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4 Corporate Overviews Corporate Overviews S A R S Chairman s Statement This year is the tenth anniversary of the Taipei Rapid Transit Corporation (TRTC). Along the way, the TRTC staff members have dedicated themselves to their work with great diligence and created corporate performance that has been highly regarded. We already have served one million passengers a day on the Taipei Metro, and we will continue to add to our efforts in response to the public s recognition and support. In the future, we will continue the development of our mission. In retrospect, since the start of Taipei Metro's operation in 1996, we have encountered a lot of challenges, for example, flats and car fires on the Muzha Line, the withdrawal of Matra Transport, Taiwan Branch (France), casualties due to Nari Typhoon, the outbreak of SARS, and so on. Despite this, we have tackled all these problems. As the saying goes, A loss may turn out to be a gain. By accumulating the lessons and experiences from these challenges, we have achieved our mission of providing a safe, reliable, cordial, and highquality transportation service and become the pride of Taipei residents and the Taipei City Government. Continuing from the past, the TRTC has accumulated a lot of great experience in operational facilities, maintenance equipment, talents, technology, and management capability through all the past challenges. As for our market, we will develop toward consulting services in areas where the TRTC possesses core competitiveness and in which there are investment benefits so as to provide new services and undertake consulting services with new ideas and technology. Moreover, through the dispatch of consultants and the contracting of assignments, the Taipei Metro has benefited from new technology and experience, raised our core competitiveness, and attained a reciprocally facilitative role of the Metro and its subsidiary industries. As the mass rapid transit service for the capital city, we have created a unique culture with our advanced management principles and service concept. Cleanliness makes an impression on the passengers as soon as they enter the Taipei Metro, for there is no graffiti on the walls and no rubbish on the ground. The stations are brightly lit with spacious, comfortable, and safe cars. Passengers line up to wait for cars, and all is orderly. Entering the Taipei Metro system, passengers appear to step into another nation, which makes a deep impression on foreign visitors to Taipei City. Good corporate culture is the best method for sustainable corporate development. Moreover, Metro staff members bring enthusiasm and seriousness to their job, which is the greatest guarantee of service quality. We hope that people will choose the Metro as a means of transportation, protect it, and become its loyal customers. With an expansion in the Metro network and a rise in service quality, passenger traffic continues to grow. In November 2004, the Taipei Metro recorded daily average traffic of one million passengers. As a vanguard of Taiwan s mass rapid transit, the TRTC will pur 03

5 Corporate Overviews sue a zero incident standard so that when future Metro network expansions start operation, headway can be shorten and service standards raised. As for its business development, it will expand its trackway services, consolidate its leading position in the industry, and make its way into connection transportation services in order to provide passengers with a comprehensive transportation service, develop recreational businesses, and develop toward innovative, diversified, and outstanding services. Moreover, we will improve corporate operations and financial transparency, increase corporate competitiveness, improve performance and connect with firstrate publicly listed companies in the stock exchange and the OTC stock market to achieve our goal of making the next decade a golden age for the Metro and pursue the perpetual development of the Taipei Metro

6 Corporate Overviews P D PL E D % , , N o v a K P I N o v a C o M E T , , , P D A President s Statement In 2004, we provided a lot of innovative measures and items in Metro system. For example, the establishment of the first 24hour Call Center to effectively shorten the processing time for customer services, respond to customers consultations instantly, and provide 24hour customer services year round. To encourage frequent usage of public transportation, we have enthusiastically promoted the portability of bicycles in the Metro. We have introduced doubledecker bicycle racks in Beitou Station to provide more parking spaces for bicycles. In line with the modernization of stations, plasma display panels (PDP) and LED TV walls have been installed inside the stations to connect the mass rapid transit system to new media. In hopes of accumulating the management experiences of related systems, the TRTC has visited the mass rapid transit systems in foreign cities. For example, in Marc h 2004, on the request of the Seoul Metropolitan Rapid Transit Corp. (SMRT), it signed an agreement for a research and learning exchange program to achieve benefits for selfgrowth and mutual exchange through important officials and staff members of both parties. To upgrade system stability, we have dedicated ourselves to launching measures related to passenger safety and putting the guideline Safety First into practice. In 2004, we launched a project to halve incidents within the system in which we tracked the causes of each incident to tackle diffic u l ties and immediately improved the Metro operations. The number of delays of more than 5 minutes in 2004 was 34, which was reduced by almost 59% (49 incidents) when compared with the 83 incidents in 2003 and achieved the goal of reducing such incidents by half. In terms of universally used indicators such as average carkm for a delay of more than 5 m inutes, the carkm figure was 1,508,000 between two incidents for the Taipei Metro system, as compared to 615,000 carkm in 2003, suggesting that the system has became more stable. According to the KPI (key performance indicator) released by Nova International Railway Benchmarking Group in 2004, the operational stability of Taipei Metro was the top among the 24 members of Nova (less than 0.5 billion trips per year) and CoMET (more than 0.5 billion trips per year), which suggests that the Taipei Metro is an internationally first rate system in terms of safety and service quality. The year 2004 is significant to the TRTC, the transp ort volume for the whole year was 350,140,000 trips, with an average of more than 956,672 trips per day. Compared with 866,272 trips in 2003, there was an increase of 94,000 more trips. It should be noted that in November 2004, it had a recordbreaking average daily transport volume of 1 million trips, which was increased to 1.03 million trips in December. With the inauguration of the Xiaobitan Line in September 2004, the total length of Metro network became 67 km, with 63 stations and seven Metro lines. The newly added Xiaobitan Line facilitates transportation, and also offers diversified functions such as station plazas, arts environment, and cafes. In line with the Taipei City Government s goal of creating a CyberCity, a circle with a radius of 150m in which wireless broadband is accessible has been created for 30 Metro stations, 4 underground malls, and the Beitou Depot. Through these wireless broadband services, passengers can make wireless communications by using a notebook computer, PDA or cellular dual mode handset. To upgrade system security and reinforce staff s response to emergency conditions, 18 multiple disaster simulated drills were held in 2004 to effectively minimize casualties and property loss. In the future, TRTC will continue upgrading its service quality and improving its facilities in response to people s needs. By enthusiastically participating in international academic activities, it will set up its benchmarking learning channels for best practices, dedicate itself to achieving the goal of zero incident, and fulfill the vision of Taipei Metro, First Class in the World, thereby boosting the quality of life of the people in Taipei City and helping the Taipei City Government develop Taipei City into a healthy international city

7 Corporate Overviews Capitalization and Shareholding Structure , , ,410 Capital Structure Diagram 9,354,100,000 6,898,247,860 1,603,560, ,483,750 33,407, , , , % 73.75% 17.14% 8.75% 0.36% Shareholder Paidup Capital Taipei City Government Ministr y of Finance Taipei County Government Tang Eng Ir on Works Co., Ltd. Taipei Fubon Bank Chiao Tung Bank Farmers Bank of China Invested Amount (NT$) 9,354,100,000 6,898,247,860 1,603,560, ,483,750 33,407, , , ,630 Percentage % 73.75% 17.14% 8.75% 0.36% TRTC has a registered capital of NT$10 billion, divided into one billion shares at a face value of NT$10 per share. When it was first establishment, the company actually received NT$7 billion, and in September 2001 and November 2002, the company converted profits of NT$2,016,000,000 and NT$338,100,000 respectively into capital; as a result, paidup shares worth NT$9,354,100,000 have been subscribed as of yearend

8 Corporate Overviews ( ) Board of Directors (as of Dec. 31, 2004) Chairman Richard C. L. Chen Standing Directors Chungchang Lin (Commissioner of Transportation Department, Taipei County Government ) TsaiLai Chen (Professor of ChiaoTung University) WuJen Chen (Professor of ChungHua University) Directors JoJun Wang (Commissioner of Taipei City Police Department) ZeCheng Wu (Deputy Magistrate of Taipei County Government) YunTsai Chou (Chairperson of Commission of Research, Development & Evaluation, Taipei City Government) ChiTe Chang (Commissioner of Department of Rapid Transit Systems) ChingHsiu Chen (Chairperson of Low and Regulations Commission, Taipei City Government) JingTsai Chen (Chairman of Nan Chiao Chemical Corp) HongBin Chen (General Manager of Tang Eng Iron Works Co., Ltd.) MaoSui Huang (Commissioner of Taipei County Police Bureau) HuelSheng Tsay (President of TRTC) ChunMing Cheng (SecretaryGeneral of Department of Transportation, Taipei City Government) Standing Auditor KaoTsan Chen (Deputy Director of Dept. of Budget, Accounting & Statistics, Taipei City Government) Auditors YongCheng Li (Secretary General of Bureau of Finance, Taipei City Government) CherngKwei Chiou (Director of Bureau of Finance, Taipei County Government) ChingHsiu Luo (Secretary General, Taipei County Government) YuNan Chung (Commissioner of Personnel Department, Taipei City Government) 10 11

9 Corporate Overviews Organization Board of Directors Supervisors Chairman Planning Dep. Auditing Office Corporate Secretary Operations Dep. President Maintenance Dep. Finance Dep. Business Dep. Information Dep. (3) Human Resources Dep. Vice President(3) Administration Dep. Muzha Line Operations Division Industrial Safety Office Legal Affairs Office Accounting Office Government Ethics Offi ce Contracting Office Manpower: ( ) Public Relations Task Force , , , Total number of employees: 3, Gender: Men 2,568, Female Average age: Education statistics: 3 with PhD degree, 28 3 with master degree, 990 with b ach elor degree, 1,290 junior college graduates, 489 senior high or vocational school graduates, and 11 junior high school graduates 12 13

10 Significant Events Significant Events SMRT Seoul Metropolitan Rapid Transit Co., SMRT Dr. K im,kichun Mr. Kim, Byung H o n g S M R T Launched the Portability of Bicycles in the Metro Pr ogram In January 17, 2004, in line with the recreational activities advocated by Taipei Municipal Government, 15 stations were selected for a trial run of the Portability of Bicycles in the Metro Program for weekends and national holidays. As the outcome was good during the trial run, and no injuries occurred, this program was officially implemented on October 17, Signed an Agreement for Research & Study Exchange Program with SMRT Dr. Kim KiChun and Mr. Kim ByungHong of the Seoul Metropolitan Rapid Transit Co. (SMRT) visited the TRTC on March 24, 2004, discussed our exchange programs, and signed an agreement for research and study exchange program with TRTC. For the firststage exchange, the SMRT dispatched staff members to the TRTC in April 2004 for workshops on information, security, planning and management. The secondstage program and the thirdstage program on maintenance were scheduled in May and June 2004 respectively, and the fourthstage program and the fifthstage program on transportation services were scheduled in September and October 2004 respectively. A total of 51 staff members participated in these exchange programs and resided in the Beitou Depot Training Center during the exchange. 14

11 Corporate Overviews Integrated the Use of TRTC Staff ID Card with IC EasyCard The new staff ID Card, which has integrated the functions of the old staff ID card into the IC EasyCard, was issued on March 31, 2004 and implemented on April 1, Integrated Training on Laws & Government Ethics as well as Labor Safety IC I C , B L E D To reinforce staff understa nding of laws and labor security, Training on Laws & Government Ethics and Labor Safety was offered between March 3 and July 5, A total of 54 training phases were offered, with 2,792 trainees Celebration for the 10 th Anniversary of TRTC In tune with the tenth anniversary, TRTC hosted a series of activities, including the Symposium on Transportation Technology in Commemoration of the Tenth Anniversary at the B1 International Conference Hall of the Metro Administrative Building on July 27, 2004, and the Anniversary Celebration & the Inauguration Ceremony of the 24 hour Call Center on July 29, Mayor Ma, Li Hsin, deputy speaker of Taipei City Council, Fai HrongTai, councilor, and former Chairmen participated in the anniversary celebration. Between July 28 and August 31, Exh ibition on Tickets & Posters in Commemoration of the Tenth Anniversary was held at the art gallery and concourse at ZhongxiaoFuxing Station. Moreover, the TRTC 10 th Anniversary Documentary publication, the TRTC 10 th Anniversary Educational Documentary Film, and the Commemorative Tickets in Commemoration of the Tenth Anniversary were issued. Two highresolution 236inch LED TV walls were inaugurated at Zhongxiao Fuxing Station and Taipei Main Station to mark the TRTC s 10 years of modernization Launched the Grand Prix for Taking the MRT Campaign Between August 8 and September 4, 2004, the Grand Prix for Taking the Metro was launched. In this campaign, passengers could be entitled to one lucky draw if they took the Metro after 10 a.m. for seven times using the EasyCard. The winner of the lucky draw could be entitled to join the campaign again. The prizes were free 365 day, 180 day, 90 day, and 30 day Metro services

12 Significant Events A T M C N S C N S C N S S O G O S O G O % % Provided Passengers with Financial Services To provide passengers with more convenient financial services, the TRTC signed a service agreement with Cathay United Bank. In this service agreement, the Cathay United Bank set up ATM, coinchange machines, and IC EasyCard Value Adding Machines at 50 stations on the Danshui Line, Xindian Line (including Xiaobitan Line), Zhonghe Line, and Muzha Line from the end of August 2004 to provide financial services such as coin change, savings, money transfer, etc. Moreover, selfservice banks were set up for passbook replacement, money withdrawal and deposits, and the coins for notes equipment was set up to facilitate the purchase of tickets Opening of the Xiaobitan Branch Line from Qizhang Station to Xiaobitan Station The inauguration ceremony for the Xiaobitan Line was held on September 29, 2004, and service commenced at noon. This line is operated as a commuter rail line and runs back and forth between Xiaobitan Station and Qizhang Station on a single line Information Security Management System Accredited by CNS17800 Between August 31 and September , the Bureau of Standards, Metrology and Inspection, MOEA conducted an onsite assessment of the Medium Capacity & Mass Rapid Transit Systems Signal Operation Control Computerized System in accordance with CNS17800 standards and on October 8, 2004, the information security management system was accredited by CNS The Inauguration of the Linking Passage between ZhongxiaoFuxing Station and Pacific SOGO Department Store. Since the inauguration of the linking passage between ZhongxiaoFuxing Station and the Pacific SOGO Department Store on November 10, 2004, the linking passage has been open to passengers so that they can directly go to the basement of the SOGO Department Store via Gate No. 4 of ZhongxiaoFuxing Station The First Doubledecker Bicycle Racks in Taiwan Installed at Beitou Metro Station. Since the first doubledecker bicycle racks in Taiwan made their first appearance in public at Beitou Metro Station on December 23, 2004, at total of 32 doubledecker bicycle racks (64 parking spaces) have been installed, increasing the parking spaces of singledecker bicycle racks by 30% to 120%. Consequently, the greater availability of bicycle parking places has increased people s willingness to use Metro transfer Finished the First Stage of Wireless CyberCity. In line with the Taipei Municipal Government s wireless broadband deployment project, wireless broadband was deployed at 35 locations for the firststage project on December , including 30 Metro stations, 4 underground streets, and Beitou Depot

13 Operation Overviews Operation Overviews S A R S 3 5, , , , The Xiaobitan Line was inaugurated on September 29, Now, operational routes include Muzha Line, Danshui Line, Xindian Line, Zhonghe Line, Nangang Line, Bannan Line, as well as Xiaonamen Line, having the total length of 67 km with 63 stations. The 1.9kmlong Xiaobitan Line links Qizhang Station and Xiaobitan Station by a single track with a journey time of approximately four minutes. Since its inauguration and operation, it has promoted the integration and development of coastal recreational areas such as the riverside park to the west of Xindian River. Moreover, station plazas, arts spaces, and cafes are close to the riverside of Xindian River, with spectacular scenery, and have become a new recreational area during weekends and holidays. 1. System Operations Once the impact of SARS was left behind, the Metro transport volume increased. In its constant pursuit of better system security and service quality, several marketing campaigns were launched, which caused a great growth in transport volume. During 2004, the transport volume for the whole year was 350,140,000 trips with an average of more than 956,672 trips/day. Compared with 866,272 trips in 2003, there was an increase of more than 90,000 trips. In November 2004, the Metro had a recordbreaking average daily transport volume of 1 million trips, which subsequently increased to 1.03 million trips. For the mass rapid transit system (Danshui Line, Zhonghe Line, Xindian Line, Nangang Line, Xiaonamen Line, and Bannan Line), the total transport volume in 2004 was 318,410,000 trips, with an average of 869,000 trips/day. Compared with 783,000 trips/day in 2003, there was an increase of 10.98%. On weekdays, the average transport volume in 2004 was 905,000 trips/day. Compared with 819,000 trips/day in 2003, there was an increase of 10.50%. On holidays and weekends, the average transport volume in 2004 was 793,000 trips/day. Compared with 703,000 trips/day in 2003, there was an increase of 12.80%. For the medium capacity transit System (Muzha Line), the total transport volume in 2004 was 31,730,000 trips, with an average of 86,000 trips/day. Compared with 82,000 trips/day in 2003, there was an increase of 4.88%. On weekdays, the average transport volume in 2004 was 97,000 trips/day. Compared with 94,000 trips/day in 2003, there was an increase of 3.19%. On holidays and weekends, the average transport volume in 2004 was 62,000 trips/day. Compared with 57,000 trips/day in 2003, there was an increase of 8.77%

14 Operation Overviews % % % 3, % % % S A R S % % 95% Looking at the growth for recent years, we see that the average transport volume was 40,000 trips/day after the inauguration of Metro in March This rose to an average transport volume of 100,000 trips/day after the inauguration of the first mass rapid transit system line, the Danshui Line. After the completion of the early road network in 2000, the average transport volume broke the record of 730,000 trips/day. But the average transport volume dropped to 860,000 trips/day in 2003 under the influence of SARS, but again broke record transport volume of 950,000 trips/day in For the medium capacity transit system and mass rapid transit system, the average headways during peak hours in 2004 were 02:51 and 05:19, while the average headways during offpeak hours in 2004 were 05:01 and 06:11, which were within the target value of the system (that is, the t a rget headways during peak hours and offpeak hours are 2~4 minutes and 4~7 minutes for medium capacity transit systems respectively; the target headways during peak hours and offpeak hours are 3~7 minutes and 5~10 minutes for mass rapid transit systems respectively.) Among them, Danshui Line, Xindian Line, and Zhonghe Line have sections of overlap, and this reduces the headway during peak hours and offpeak hours between Guting Station and Beitou Station to 3:27 and 3:56 respectively. Considering the high demand of the Bannan Line and the Nangang Line during peak hours, three Metro trains and an additional five services were added during peak hours. More services were added between Longshan Temple Station and Kunyang Station in the morning and between ZhongxiaoFuxing Station and Xinpu in the afternoon. Consequently, the headway during peak hours was reduced to 4:28. In addition, the ontime rates of the medium capacity transit system and mass rapid transit systems in 2004 were 99.48% and 99.56%, which exceeded the 95% t a r get value of the system. Total Annual Transport Volume Average Daily Transport Volume 22 23

15 Operation Overviews 2004 Headway during Peak Hours 2004 Headway during Peak Hours (up to 2004) Remark : The average headway during peak hours is 2~4 minutes and 3~7 minutes for medium capacity transit systems and mass rapid transit systems respectively Headway during OffPeak Hours 2004 Headway during OffPeak Hours (up to 2004) Remark: 1. The average headway during offpeak hours is 4~7 minutes and 5~10 minutes for medium capacity transit system and mass rapid transisystem respectively. 2. The average headways during offpeak hours in August and October were slightly increased due to typhoons. 25

16 Operation Overviews On Time Rate (up to 2004) ( ) , 378 5, LED L E D 3 ~ 5 2. Management of Affiliated Businesses Besides providing commuting services, we also manage affiliated businesses including advertising, shops, parking lots, underground shopping malls, and linking passages. Through business diversification, we aim at profit maximization and provision of multiple services. (1) Advertising The purpose of advertisement management is to achieve a higher aggregate value using highquality media images and large crowds of people. To achieve a highquality visual experience for passengers, in addition to the advertisements in the stations and trains, new services were added in 2004, including the incorporation of new technology, the deployment of electronic media, and the launch of a station advertisement modernization program. 1. Advertisements in the Stations & Trains At the end of 2004, there were 163 advertisements in the stations of the medium capacity transit system ant 306 advertisements in the trains; there were 1,378 advertisements in the stations of the mass rapid transit system, ant 5,916 advertisements on the trains. 2. Construction of LED TV Walls at Taipei Main Station and ZhongxiaoFuxing Station Since the inauguration of 236 inch LED TV Walls at Taipei Main Station and Metro ZhongxiaoFuxing Station on July 29, 2004, there was a new era for Metro advertisements. The l a rgescaled TV walls provided ordinary advertisements. Every hour, 3~5 minutes were assigned for public service advertisement time slots to promote public spirit or public services, which can save public funds and boost the service image of the Metro

17 Operation Overviews 3.PDP ( P D P ) ( ) ( ) ( ) 1 6 2, , 722( ) 61 8, Construction of PDP at Metro Stations To provide a more diversified integrated information platform to Metro passengers, PDP was constructed at Metro stations at the end of 2003 to integrate train arrival updates and date/time display, bulletin board and provide space for commercial broadcasting. 270 larg e PDPs (46 50inch PDPs; (224 42inch PDPs) were set up. Electronic media were available at each Metro platform to achieve instant, caring information services. (2) Shops Shops in Metro stations offer passengers with diversified products and services including grocery, information exchange, pharmacy, music, clothing and ornaments, books, food, etc. to satisfy passengers with different needs. Up to the end of 2004, there were 91 shops. In order to assist the Social Welfare Organization, each Metro line leaves one shop to be run by the Taipei City Labor Department as a Social Welfare Organization Patronized Shop. Number of Shops (including Beitou Travel Service Center, Danshui Job Center, and Ximen Travel Service Center) No. of Shops (3) Parking Lots Danshui Line 41 Xindian Line 13 Zhonghe Line Bannan Line Muzha Line Along the various Metro routes, TRTC has as many as 16 vehicle parking lots with 2,882 parking spaces, 26 motorcycle parking lots with 6,722 parking spaces (only the ones at Danshui Station are not free), 61 bicycle parking lots with 8,253 parking spaces. The Taipei City Government integrated the ticketing system for Metro, buses and parking lots. On December 17, 2004, the EasyCard parking lot transfer integration services were set up at Quilian Station, Xinbitou Station, and Xiaobitan Station. As a result, there are already 15 parking lots that accept EasyCards for payment of parking fees Total 91 No. of Parking Lots 1,451 4,298 2, , , , ,882 6,722 8,253 Danshui Line Cars 1,451 Motorcycles 4,298 Bicycles 2,901 Xindian Line ,537 Zhonghe Line ,333 Bannan Line ,639 Muzha Line Xiaonanmen Line Total 0 2, , ,

18 Operation Overviews ( ) (4) Underground Shopping Malls The design of underground shopping malls not only serves practical purposes for life, but also provides the public with a cozy shopping space. There are four underground shopping malls: the Zhongshan Metro Mall, Ximen Metro Mall, Station Front Metro Mall and East Metro Mall, with a total of 142 shops. Among them, the Zhongshan Metro Mall and East Metro Mall have already started business. In March 2004, Station Front Metro Mall was inaugurated and was transferred to the Taipei Municipal Markets Administration Office in January 1, Ximen Metro Mall served official purposes. Those shops are primarily boutiques, cosmetics, bakeries, food courts, pharmacies, largescale bookstores, toyshops, and so on S O G OS O G O S O G O 4 S O G O , ,272 3,705 3,155 12,710 No. of Shops 142 Number of Shops and Area Area(m 2 ) Zhongshan Metro Mall 83 4,578 (5) Linking Passages Ximen Metro Mall By the end of 2004, the linkage projects for the Taipei Caesar Hotel, Taiwan Land Development Trust Co., and Pacific SOGO Department Store were completed. Among them, the application for the linkage passage construction project between Zhongxiao Fuxin g Station and Pacific SOGO Department Store suffered a lo t o f setbacks. Although an application was filed as early as 2004, linking was not possible under the restriction s o f construction laws and regulations at that time. After the amen dmen t of related laws and regu lation s in 20 01, the TRTC filed ano ther application again in Up on the approval of related government departments, the linking project began construction in May On November 10, 2004, the inauguration ceremony of the linking project was held. With its completion, passengers can directly go to the basement of the SOGO Department Store via Gate No.4 o f Zh ongxiao Fu xing Station. Mo reover, the linkin g p ro je ct lin k s th e Met ro s tatio n, SO GO Department Store, and East Metro Mall, making the Metro system more closely connected to the East District bus iness circ les, enhancing peripheral business opportunities and prosperity, increasing Metro transport volume, creating a win win relationship with people and companies. Above all, this linking project has created at least NT$ 2.05 million in license fees every year. 7 1,272 East Metro Mall 35 3,705 Station Front Metro Mall 17 3,155 Total ,

19 Operation Overviews , , , , , , % S A R S I C % 2 Transport Income (up to 2004) 3. Revenue & Rental The total revenue of 2004 was NT$9.1 billion, which included NT$8.89 billion for operating revenue and NT$0.24 billion for nonoperating revenue. For operating revenue, NT$7.61 billion was transport income and the remaining NT$1.27 billion (including NT$1.13 billion for affiliated business revenue and NT$0.13 billion for other business revenue.) Revenue from Transportation The transport income in 2004 for medium capacity rapid transit system was NT$630,790,000 with an average daily income of NT$1.72 million. The transport income in 2004 for the mass rapid transit system was NT$6,984,930,000 with an average daily income of NT$19.08 millions. The total income of medium capacity system and mass rapid transit system was NT$ 7,615,720,000 with an average daily income of NT$20.8 million and an increase of 8.84% if compared with NT$19.11 million in According to the growth trend for the recent years, the transport income in 1996 was NT$0.2 billion, and thereafter, transport income has kept on increasing. With the inauguration of the first mass rapid transit system Danshui Line in 1997, transport income reached NT$0.9 billion, which rocketed to NT$6.1 billion after the completion of the preliminary Metro network in Although the transport income dropped to NT$6.9 billion in 2003 under the influence of SARS, it achieved a record transport income of NT$7.6 billion in Since the introduction of the IC EasyCard in the Metro on June 12, 2002, the usage rate of EasyCard has continued to increase. On May 12, 2003, the sale of storedvalue cards was terminated. Then the usage rate of EasyCard reached 85% in 2004, so that the EasyCard has become the mainstream ticket for the Metro. However, due to the offer of 20% discounts for the use of EasyCard, corresponding growth in transport services could not be reflected in the transport income Ratio of Ticket Type Jun Dec Note : Storedvalue tickets were terminated from May 12,

20 Operation Overviews % L E D % L E D 2, Types of Revenue from Affiliated Businesses % Revenue from Affiliated Businesses The revenue of affiliated businesses in 2004 was NT$1.13 billion. Compared with the NT$0.76 billion in 2003, the growth rate was 48.7%. This was mainly due to the integration of the bidding for advertising contracts following the expiration of initial contracts. In this way, the bidders paid more royalties for the advertisement. On July 29, 2004, with the construction of LED TV walls and the PDP set up on platforms, income from advertisement rental reached NT$0.72 billion, an increase of 71.4% if compared with NT$0.42 billion in The income from LED TV walls and PDP at the station platform was increased to NT$27.17 million. Income in 2004 was NT$0.13 billion for shop rental, NT$0.11 billion for underground malls, and NT$0.14 billion for parking lot rental. The share of rental is as follows: Rental Payment Taipei City Government has commissioned the TRTC to operate the Taipei Metro under a lease. Between March 28, 2001 and December 31, 2010, both parties signed a Metro system property lease for nine years and nine months. Pursuant to Article 15 of the Regulations Governing the Establishment of Public Mass Rapid Transit Corporations : The property of all mass rapid systems under the property right of the government shall be leased to the mass rapid transit corporation. However, if the mass rapid transit network has not been completed within five years of operations of the mass rapid transit corporation, it shall be leased free. Hence, between 1996 and 2000, the rental for the routes was NT$1 because the TRTC should be responsible for the maintenance of Metro system property and equipment and the replacement of system equipment. The annual system rental since 2001 was calculated based on system equipment replacement fees and 4% of annual revenue. In 2004, the rental of NT$2.375 billion was saved into the Taipei Municipal Taipei Metro Fixed Asset Replacement Funds, which were for replacement of old equipment to ensure sustainable operations of the Metro. The accumulated replacement funds as of yearend 2004 was NT$9 billion and the system replacement expenditure in 2004 was NT$ 0.2 billion. Since the inauguration of the Metro in 1996, with a gradual expansion of Metro network, it started to have net profit after tax in The net profit after tax in 2000 was NT$2.5 billion. Due to the payment of a great amount of taxation and transfer discounts in 2001, net profit after tax was reduced to NT$0.3 billion, whereas it became NT$0.7 billion in Net Profit After Tax & System Rental: Year Profit after Tax (426,100,600) (321,427,473) 370,208,199 1,247,302,457 2,598,263, ,033, ,432, ,520, ,126,675 Rent NT$ 1 for each line NT$ 1 f or each line NT$ 1 for each line NT$ 1 f or each line NT$ 1 for each line NT$ billions for all system NT$ billions for all system NT$ billions for all system NT$ billions for all system Remarks : 1. Capital was NT$7 billion before 2000 (inclusive), NT$9.016 billion in 2001 and NT$ billion in The TRTC has paid NT$0.3 billion for bus transfer fees since It has paid full transfer discounts s ince It paid NT$0. 74 billion in 20 02, NT$ billion in 2 003, and NT$0.869 billion in The net profit after tax between 1996 and 2003 was audited by the Taipei Municipal Auditing Department

21 Corporate Overviews ,100,600 1 Net Profit After Tax ,427, ,208, ,247,302, ,598,263, ,033, , , ,432, ,520, ,126, % % 9 % % 2. 9 % % Financial Revenue Taking the flexibility, security, and profitability of financial allocation, the financial investment maximizes profits to create higher investment returns and interest, including: Interest rate changes, mutual fund investment proportion adjustment, financial products of a higher reinvestment rate, selection of a bank for higher interest rates for largedenomination time deposits to increase the interest of certificate deposits (CD). The working capital in 2004 was NT$7.5 billion. Based on several indicators: monthly capital demand and investment in CD, public debts and financial bonds, convertible bonds, mutual funds, and stocks in the ratio of 7.1%, 12.4%, 9%, 68.6%, and 2.9% respectively. The total financial revenue of 2004 amounted to NT$0.176 billion, which constituted 1.9% of the total financial revenue

22 Corporate Performance Corporate Performance , , 500 We have always strived to reach our objective to provide passengers with a convenient, safe and cordial commuting environment. In 2004, we improved and strengthened the existing system equipment and provided more creative measures to give passengers more friendly and cordial services and create a reliable and safe transportation environment. 1. Creative Measures & Friendly Services Construction of a 24hour Call Center In response to the consultation of passengers and shorter processing time, the 24hour call center was founded on July 29, Just call (02 ) for personalized services. Contrary to voice responses for common passenger services, they are handled by customer service agents. When a passenger calls, he/she first will hear the greeting from the TRTC, and then the customer service agent will answer the phone, so that passengers experience cordial and speedy service. After communication has been completed, the computertelephone integration system can display the personal information of passengers, passengers needs, and their previous complaints and solutions, so that it is possible to find a suggested model answer so as to save communication time and even send the information that is not easily explained orally by fax to the passengers. By the end of 2004, there had been a total of 84,594 consultations, with a daily average of 542. In case of special incidents, such as typhoons, earthquakes, system breakdown, etc., the customer telephone complaints amounted to over 1,500, which conformed to the functions of instant response to passengers

23 Corporate Performance Types of Passengers Inquiries in 24hour Call Center % % Portability of Bicycles in the Metro and DoubleDecker Bicycle Racks With an increase of bicycle users and in response to the World No Car Day and World Earth Day, passengers are permitted to carry bicycles at specific Metro stations on Saturday, Sunday and national holidays since January 17, In line with bike lanes or scenic spots of the surrounding areas, 15 Metro stations on Danshui Line, Xindian Line, and Zhonghe Line were selected for a trial run. This program has been well received by people and made great achievements. Therefore, after this program had run for nine months on a trial basis, the TRTC continued to implement this program from October 17, 2004 to encourage passengers to make more use of another transportation means and achieve the promotion of diversified recreation. To solve the parking space for bicycles, doubledecker bicycle racks were installed at the Beitou Depot. On December 23, 2004, the inauguration ceremony of these doubledecker bicycle racks was hosted by Mayor Ma. In Mayor Ma s speech, he expressed his appreciation to the TRTC for turning bicycle riders and motorcycle riders into Metro users, in hopes that more car drivers and motorcycle riders become cyclists and cycling becomes a tool for transportation, connection and recreation. A total of 32 sets of doubledecker racks (64 parking places) were built at Beitou Depot, which increased the parking space of singledecker bicycle racks by 30% to 120%. In 2005 and 2006, another 300 sets (600 parking places) will be built in other stations to provide more parking spaces for those transfer passengers using bicycles. Planning the Platform Door Program To enhance the safety of passengers when they are waiting at the platforms, the Preliminary Feasibility Study for Installing Platform Doors for Mass Rapid Transit System was completed in June 2004, and the program schedule was confirmed in October For the preliminary program, six side platform doors were installed at Taipei Main Station (Bannan Line and Danshui Line) and ZhongxiaoFuxing Station for three months. It is planned that four side platform doors will be completed at Taipei Main Station by the end of As for Metro stations without platform doors, an Alert Systems for Platform Track Invasion Detection has been discussed in consideration of the possibility of people invading the track. The program was implemented in two phases. For the first phase, three stations, including Jiangzicui Station, Guandu Station, and Danshui Station were selected, based on the characteristics of Metro stations. It was planned that the con struction and testing wou ld be completed by th e en d o f The construction, testing, and operation evaluation of the first phase will be taken as the reference for project outsourcing in the second phase. Establishing Mobile EasyCard Gates To manage the large crowds of people during the Lantern Festival and New Year Eve Evening Party, mobile EasyCard gates were set up at mass rapid transit system stations such as Taipei Main Station, Xinpu Station, NTU Hospital Station, Taipei City Hall Station, Sun YatSen Memorial Hall Station, Yuanshan Station, and Jiantan Station and completed on December 23, Due to the above measures, the number of paper tickets used by the crowds in the 2004 New Year Eve Evening Party was 10,084, reduced 40 41

24 Corporate Performance , , % , % P D A A T M G S M P H S 3 G / 3 G by 54% compared with 22,094 in 2003, and reduced by 67% compared with 30,714 in All these measures can effectively speed up the entrance and exit of passengers into and out of the stations, cut the manpower required for the sale of paper tickets, upgrade the mobile service capability of stations, and check and control EasyCards. Fortytwo portable EasyCard processing machines were purchased to increase the number of service windows and provide more speedy service to passengers. Construction of the Cyber City In line with the CyberCity policy of Taipei City Government, deployment of wireless broadband services was made in the Metro stations. By the end of 2004, broadband services were completely deployed in the Bannan Line from Kunyang Station to Longshan Te m p l e Station, Danshui Line, the Danshui Line from Shilin Station to Gongguan Station, the Muzha Line from Technology Station to Zhongshan Junior High School, Xiaonanmen Station, and Beitou Depot. In addition, broadband services were deployed in the four underground malls including the Zhongshan Metro Mall, Ximen Metro Mall, East Metro Mall, Station Front Metro Mall and the 150mradius in commercial areas. In this way, people can enjoy the convenience of wireless broadband services using notebook computers, PDAs or cellular dual mode handsets. Wireless broadband services were expected to be completed in August After the broadband services have been fully deployed at Metro stations, the Metro system can provide wireless broadband services to its passengers. Provision of Convenient Financial Services After the inauguration and operation of the Muzha Line, the TRTC collaborated with established local banks to provide convenient financial services. The lighting and the security system of the Metro stations can lower the crime rate and increase the sense of safety of passengers. In this way, more people choose to use the financial services at Metro stations. To upgrade the service quality of the Metro, the TRTC collaborated with the Cathay United Bank, by setting up 86 ATMs, 113 coinchanging machines, and 124 SMART valueadding machines at 50 Metro stations on Danshui Line, Xindian Line (including Xiaobitan Line), Zhonghe Line, and Muzha Line to provide financial services including coin change, savings, and transfer. Moreover, selfservice banks were set up at 6 stations including Danshui Station for passbook replacements, money withdrawal and deposits, and the billtocoins equipment was set up to facilitate the purchase of tickets. Expansion of Underground Communications Services After GSM wireless telephone communications were deployed throughout the Metro system, PHS digital wireless telephone services for all underground stations was launched in April However, a technology breakthrough should be made for the tunnel technology. Moreover, in line with the 3G mobile telephone services, the integration of 2G and 3G services was made on Danshui Line underground stations and the Nanshi Station parking lots were completed in It was expected that such services would be completed in December

25 Corporate Performance , L u x3 0 0 L u x Improving & Enhancing System Equipment Construction of Train Information Display System for Passengers To give a better understanding of the operations of the Metro system, Tr a i n P a s s e n g e r Information Display Systems have been continuously installed on mass rapid transit system and the Train Route Indicator & Destination Displays were installed on the side of trains. Inside the trains, trainpassenger information displays were installed. Installation in the first batch of 301 trains was completed by the end of 2002, and in the second batch of 321 trains was completed on April 23, Noise & Ventilation Improvement Projects In October 2001, the noise improvement project was completed for the Minquan We s t Road Station of the Danshui Line. In June 2003, the noise improvement project was completed between Beitou Station and Fuxinggang Station. Between 2004 and 2005, noise improvement projects were completed for the Beitou Line & Elevated Sections between Beitou Station and Fuxinggang Station, Elevated Sections between Shilin Station and Zhishan Station, Surface Sections between Zhuwei Station and Danshui Station. Due to the highrise buildings at several stations at the north end of the Muzhua Line, it is hot on the platform in summer. To provide passengers with a better waiting environment, airconditioning improvement projects were under construction on the platforms of three stations, Nanjing East Road Station, ZhongxiaoFuxing Station, and Daan Station of Muzha Line in 2004 and were completed in December 31, Since summer of 2005, this has provided passengers with a more comfortable waiting environment. Impr oving Station Lighting & Installing RearView Mirrors for Elevators and Floor Marking Boards To improve lighting and create a sense of aesthetics, lighting replacement or improvement were made on six Metro stations: Beitou Station, Fuxinggang Station, Zhongyi Station, Guandu Station, Zhuwei Station, and Hongshuilin Station. 1,130 lamps were replaced or improved from 80Lux to 300Lux. In December 2004, 210 rearview mirrors for elevators and 840 floor marking boards were added to facilitate the entry and exit into and out of the elevators by wheelchairs to achieve a friendly space for passengers with disabilities

26 Corporate Performance Installing LED Flash Alarms between Platform Gap and Trains Due to the great curvature at the platform of Guandu Station, the greater gap between the platform an d the train may easily sub ject passengers to in juries. To red uce incidents, voice reminders are used, just like at Taipei Main Station. Moreover, highillumination LED flash indicators were added between the wide gap between the platform and the train. This project was completed in September 2004 to strengthen the alert functions and lower the number of injuries. 3. Development of Public Relations People & Guest Visits To strengthen the Metro safety promotion and boost corporate image, the TRTC enthusiastically welcomed visiting groups. In line with functions of the Taipei City Government and the Ministry of Foreign Affairs, it engaged in the reception services of foreign guests. The total of visiting groups in 2004 was 187 groups (5,888 people), which included 59 foreign visiting groups (715 people), 16 local schools (590 people), 45 local organizations and associations (2,111 people), and 67 firstcontact activities (2,472 people.) News Release & Passengers Opinion Management LED LED , , , , , , Based on the characteristics of each incident, timely news will be released to the public to strengthen the people s understanding of TRT C s measures. In 2004, 96 news releases were made to the media. Moreover, a news database was added to the company website to provide keywords for historical information and searches. Regarding passenger consultations, suggestions or complaints, customer service agents provide 24hour friendly and speedy responses and explanations, which effectively relieve people from their worries and dissatisfaction. In 2004, a total of 90,921 complaints were tackled. These included 84,594 passenger telephone calls, 3,917 passengers opinions, 622 messages to the mayor, and 1,788 electronic mail messages. Regular Station Opening to the Passengers The purpose is to familiarize people with station emergency exits, emergency signs, emergency equipment, firefighting equipment, and related emergency procedures so that they can immediately report these emergencies, handle them, or guide the other people in case of emergencies. In September 2004, the Regular Station Opening to the Passengers Program was launched. Residents, teachers, and students in the neighborhood of stations were invited to visit the stations and the emergency equipment and procedures used during emergencies were explained to the visitors. As of the end of 2004, 706 visits at 20 levels were executed to give a better understanding of station operations, enhance their rescue capability during emergency, build up a good relationship between the surrounding communities and schools, and create a winwin relationship. Providing Passengers with Metro Facilities at Beitou Station The Beitou Hall is located inside the Beitou Depot, which was originally used by Metro staff members. To reward passengers and effectively utilize resources, it was open to the public 46 47

27 Corporate Performance , , , , P A O , on July 14, The membership system is adopted for the recreational activities of people and corporations. Using Metro resources, it assists communities, creates a quality environment incorporating transportation, arts and culture, and recreation. The Beitou Hall provides rental sites, including classrooms, trainees dormitories, and recreational centers. Classrooms include l a rge and small classrooms and computer rooms. Recreational facilities include basketball courts, table tennis rooms, billiard rooms, gymnastics rooms, swimming pools, etc. Conference halls, gymnastic rooms, children playgrounds, etc. were added in By the end of 2004, the number of members reached 14,849; classroom use was 906, trainees dormitory use was 7,763, and the usage of recreational center equipment was 101, Enhancing Business Performance Sustainable operation is the longrange goal of TRTC. To achieve this goal, the TRTC has enthusiastically upgraded its management capabilities, launched different management measures, and strengthened information automation procedures. Implementation of Incentives and Reward Systems To encourage staff members to upgrade service quality and customer satisfaction, monetary rewards were offered to them. Seven incentive programs were planned and executed. These included: Award of Outstanding Individual Pe rformanc e, Awa rd of Outsta nding Eleme ntary Chiefs (Station Chie fs), Award of Outstanding Elementa ry Chiefs (Supervisors ), PAO Job Ta b l e Improvement Design Projec t, Accident Reduction to Half, No Responsibility for Train Service, and Reinforcing Checks on Passenger Violations. To encourage staff members to become creative and improve their services, incentive systems were implemented and examined in two stages. In the first stage, staff members were encouraged to raise questions and solutions. In the second stage, incentives were offered 48 49

28 Corporate Performance C N S ( E I S ) to major improvements and achievements. In 2004, a total of 807 applications were made, and 504 were awarded to a value of NT$ 370,65 0. These inclu ded 5 Ho nors Awards, 9 First Awards, 12 Second Awards, 15 Awards of Excellence, and others. For the effective implementation of creativity and major improvement, the 2004 Election of Outstanding Proposals was held in the International Conference Hall of the Metro Administrative Building in February Three outstanding applicants were selected and awarded NT$50,000, NT$30,000, and NT$10,000. Implementation of Responsibility System for Objective Performance Appraisal For objective assessment of job performance and profit maximization, TRTC implemented a responsibility system as a performance management tool. In recent years, many local corporations adopted a performance management tool called the Balanced Scorecard. Wi t h Balanced Sco recard, co mpanies can have a more balanced d evelopment in regard to their finance, customers, production and learning. In 2004, TRTC developed the Strategic Goals and Key Performance Indicators (KPI) as performance index with reference to the spirit of the Balanced Scorecard. Enhancing Infor mation Management Performance To shorten the processing time and increase job effectiveness, several information automation procedures were implemented in 2004: Accreditation of Operation Control Information Security Management System of medium capacity transit system and mass rapid transit systems (CNS17800): The operation control computer of the medium capacity and mass rapid transit system is the center of the Taipei Metro and was implemented without the assistance of professionals and consultants and was accredited for its information security. Construction of Enterprise Information System (EIS): Integrates the transport volume, revenue, trains, finances, website, personnel, and major events to provide senior management with realtime access to the Internet and keep abreast of company updates for management decisionmaking

29 Corporate Performance G I S / , , , , Subjects of Personnel Training Equ ipment Facilities Management System: In line with the Geographic In formation System of the Taipei City Government, the firstphase construction was started at the end of By means of GIS technology, people can access more geographic information and construct Metro equipment/facility drawings, work descriptions, etc. Shorten EasyCard Withdrawal Time: Simplify the EasyCard withdrawal p rocedures, so that passengers do not need to fill out application forms and the confirmation of Metro staff, thereby greatly enhancing service efficiency and shortening passengers waiting time. Compared with the past situations, station service staff could process 60 applications, but now they can process 100 applications. Construction of Station Consultation Form Computerized System: Reduce the repeated filling of application forms, shorten data transmission procedures, and increase station staff s job efficiency. After the construction of the system, this can shorten the processing procedures of financial accounts and enhance data accuracy and the efficiency in process production. Consumable Management System : Warehousing staff members can first be informed of the needs of staff members for consumables and then distribute them to the staff members at fixed times so as to shorten waiting time, warehousing staff and achieve efficient inventory control. Strengthening Personnel Training and Core Competence With the objective of proper management of our human resources, we have consistently improved employment requirements, salary system, promotion assessment and person nel training. Thro ugh p rejo b training for new employees, professional training, supplementary training in knowledge and skills, management and interpersonal skills training, safety and health training and service attitude training, personnel have become skillful enough to meet their job requirements. In addition to specific skills, they are also encouraged to have other training for a more complete career planning and more balanced personal development. In 2004, TRTC organized 1,479 training teams (32,261 staff members). Compared with the 1,053 terms (18,783 staff members) in 2003, the increase was 40%

30 Corporate Performance 40%72% (776) , ,859 Contrary to TRT C s past dedication to the needs for system operations, transportation services, and professional training on repairing, it set up a hierarchical administrative management training system to formulate a blueprint for management studies, in hopes of achieving operation performance and its vision of Taipei Metro, First Class in the World. The administrative management system included: fundamental training for administrative taskforce, administrative management training for TRTC departments, administrative training and development for clerical taskforce, administrative training and development for technical taskforce, fundamental training for basiclevel management, fundamental training for middlelevel management, talent training and development for the management levels, etc. In the future, core competence could then be achieved by internalizing the knowledge from the outside into management experiences, in order to change the existing operations of TRTC. To upgrade management techniques and quality requirements for different levels of management, in 2004 different management levels formulated symposiums or workshops, and seminars and discussions on service arrangement, management, and coordination and emergency response to enhance their management and leadership skills and the cohesion of the management to the compan y. In 2004, TRTC organized seminars for 347 managers. To increase their practical experience, local government officials or experts were invited to deliver speeches, and 776 staff members were selected to participate in these speeches to enhance their service principles and benchmark learning. Ensuring Labor Safety & Health and Implementing Fire fighting Drills Between March 1 and July 5, 2004, fiftyfour Staff Safety Strengthening & Firefighting Drills were held to strengthen staff s notions of traffic safety and reduce traffic incidents. In addition, staff s response techniques were trained so that they became familiar with fir e fighting equipment and opera t i o n s. For the different working environments, different labor safety trainings were offered to the staff in transportation services, repairing, and administrative services so that they got a better understanding of the hazards in workplace job safety procedures, and fir e fighting emergency response techniques. A total of 3,084 trainees participated in these training programs. To ensure the safety and health of Metro staff members, the Guidelines Governing the Safety and Health of Sponsoring Manufacturers were formulated to stipulate and assist manufacturers in the implementation of job safety and health. Through job training, labor safety and health standards were upgraded to avoid job disasters and protect the lives of businessmen and staff members. In 2004, 7,859 trainees participated in these training programs

31 Strengthening Marketing Tools & Building a Quality Life Style Strengthening Marketing Tools & Building a Quality Life Style , To attract more people to use the Metro and turn them into loyal Metro passengers, the TRTC promoted marketing activities continuously including public art, diversified cultural and recreational activities, exhibiting humanity outside the transport technology, and promoting a quality lifestyle. Grand Prix for Taking the Metro Between August 8 and September 4, 2004, the Grand Prix for Taking the Metro was launched. In this campaign, passengers could be entitled to one lucky draw if they took the Metro after 10 a.m. for seven times using the EasyCard. The winner of the lucky draw could be entitled to join the campaign again. Every week, Honor Awards (3), Gold Awards (6), Silver Awards (10), and Copper Awards (50) were offered to each of the winners who were eligible for obtaining one free 365day, 180day, 90day, and 30day EasyCard respectively. Lucky draws were made in front of the Passenger Service Center at Metro Taipei Main Station every week. During these lucky draws, attorneys, media, and the public were invited to become the witnesses to these lucky draws, in which lucky numbers were randomly selected by computer. These lucky draws were successful because the transport volume during these activities was increased by 17,305 passengers in comparison with the transport volume on regular weekends and publicholidays. Let s Love Animals! To promote the awareness of environmental protection and people s care for natural habitat, the TRTC held the 2004 Taipei Zoo FestivalLet s Protect Animals! with the Taipei Zoo. The an nual meetin gs fo r the Wo rld Association o f Zo o & Aquariu m (WZAZ) an d the Conservation Breeding Specialist Group (CBSG) were held in Metro from October 17, During the exhibitions on Posters for International Zoo and Wild Animal Habitats held at the art gallery of Metro stations, the TRTC issued Oneway Tickets & Collections on Preserved Animals, and animalthemed trains were also decorated. In addition, impressionistic decorations on Metro animal resorts were produced at different stations on the Muzha Line, and the activity called Passport to Animal Gathering was also o rganized. During these activities, the average transport volume of Muzha Line on weekends and public holidays was increased by 5,687 passengers to 69,428 passengers, compared with the transport volume of 63,741 passengers for the same period of last year

32 Strengthening Marketing Tools & Building a Quality Life Style W Z A Z C B S G ,428 63,7415, % V C R , Love s Guardian To appeal to the needs of women, the TRTC organized the Love s Guardian campaign between December 1 and December 30, The themes of this campaign were Love s GuardianMen Should not Let Women Weep, Love s GuardianAttack Sexual Assaults, and Love s Guardian Christmas Carol, and Love s DutyVCR Filming, etc.. On December 22, the Love s GuardianTaipei Metro Protects Your Safety activity was held. Metro s promotional shorts designed for the safety of women and children were broadcast at different Metro stations to publicize the safety facilities for women inside the Metro system and the attentions to be taken. In addition, starting from December 30th, 10,000 free safety whistles would be offered to female passengers at the information desks of Metro stations, upon inquiry. Taipei Cultural Festival Cooperated with the Taipei City Government and the other government departments and foundations, the Taipei Cultural Festival was held. These activities included : Taipei Cultural Passport and Taipei Fun, etc. To encourage people to know museums and art gallery, the TRTC cooperated with 33 cultural sites to launch the Metro Treasure Hunt and Taipei Tour. Love Story Solicitation for Valentine s Day In line with the Va l e n t i n e s Day, the TRTC organized the Love Letter Solicitation for Valentine s Day. Starting from February 13, 204, 40 love stories were showcased in the Metro. Introducing Metro Trip to the World Project Between May 12 and June 22, 2004, the Metro Trip to the World was held in the Taipei Main Station Underground Mall. These activities included: Metro s Global Village, Fun Weekends, Metro Shopping World, lucky draws and much more. No. 6, 7, and 8 Plaza of the underground mall were decorated as Metro Global Village including scenes from the world s scenic spots

33 Strengthening Marketing Tools & Building a Quality Life Style Metro Life 1 0S t y l e F a s h i o n I d o l Sight Festival Selling Metro Souvenirs The metro souvenir shop at the Taipei Main Station has earned high public acceptance since its grand opening on December 27, The number of items offered have grown from 20 items at the very beginning to 40 items at present, varying from commemorative tickets (in sets), souvenirs, video games, model trains, gift boxes to stationery. In order to expand its target market, the shop occasionally sells festivalrelated products at different points of the stations. The Metro Commemorative Tickets and Souvenirs Sold in 2004 Were as Follows: On January 25, the Reading in the City, Travel in Taipei activity was held. On January 26, it issued Metro Collected Products including two oneway tickets, four wonderful dolls, and two movie tickets. On February 1 4, it issued 2,000 commemorative stamp s themed as Taipei Flower Festival. On March 10, May 10, July 10, and September 10, it issued Selected Stamps for Yangmingshan, Selected Stamps for Tingshan Stone Ladder, etc. In line with the 10 th anniversary, Metro Life commemorative products were launched. A total of 27 products were produced under the themes of Style, Fashion, Idol, Sight, and Festival. On August 10, the Traditio nscom memorative Tickets for Selected Taipei Celebrities were issued. To celebrate the inauguration of Xiaob itan Line, Co mmemorative Tickets for Xiaobitan Inauguration were sold on September 29. In line with the Let s Love An imals activity, 2004 collections for Taipei Zoo were issued on October 31. The collections included 14 tickets featuring Taiwan s indigenous and preserved animals

34 Reinforcing System Safety and Ensuring Service Standards Enhancing System Security and Service Standards % , ,0 0 0 N o v a K P I N o v a 5C o M E T5 2 4 To enhance service quality and build up a safe transportation environment, measures including equipment maintenance and repairs, major metro train repairs, Accident Reduction to Half, incident tracking for improvement, multiple disaster simulated drills, and strengthening personnel training were performed to provide people with a stable and safe mass transit environment. Enhancing Reliability and Reducing Incidents To further reduce the inconvenience of delays and malfunctions and increase system reliab i l i t y, TRTC implemented the Accident Reduction to Half project in The number of delays of more than 5 minutes in 2004 was 34, which was reduced by almost 50% (49 incidents) if compared with the 83 incidents in 2003 and achieved the goal of incident reduction to half. Among the 34 incidents, 14 incidents were uncontrollable (refer to nonsystematic equipment failures that are out of the control of the company, e.g. track invasion, drop of passenger s belongings onto the train tracks, abnormal electricity supply and natural disasters such as lightning strikes, earthquakes, overly high wind speed, etc.) and 20 incidents were controllable. The universally used indicator, average carkm for a delay of more than 5 minutes, was used for the comparison. The higher the carkm number, the more stable the system is. The carkm number was 1,508,000 between two incidents for the Taipei Metro system. Compared with the 615,000 carkm in 2003, the number in 2004 was several times higher, which suggested that the system became more stable. According to the KPI (key performance indicator) released by Nova International Railway Benchmarking Group in 2004, the operational stability of Taipei Metro was the top among the 24 members of Nova (less than 0.5 billion trips/year) and CoMET (more than 0.5 billion trips/year), which suggested that the stability and service standards of the Taipei Metro were internationally first rated and became a significant achievement of the Taipei City Government

35 Reinforcing System Safety and Ensuring Service Standards Type of Incidents Diagram showing car km between two incidents from 2000 to 2004 = 1,000 carkm / (Carkm = the total carkm for the whole year (1,000 car km) / total number of incidents for the whole year; the higher the number, the more stable the system is.) Number of delays for more than 5 minutes between 2000 and 2004 Nova CoMET Diagram comparing the carkm of TRTC with that of members of No v a and CoMET N o v a 1 2 C o M E T 1 1 (12 me tro s ys te ms of NOVAinclude Gla sgow, Kowloon, Lisbon, Montre al, Ne wc astle, Na ple s, S ingapore, Taipei, Bue nos Aires, To ronto, Sa ntiago, and Rio de Janeiro.) (11 metro systems of CoMET include Berlin, Hong Kong, London, Mexico, Moscow, New York, Paris [subway and national railway,] St. Paul, Tokyo, and Madrid ) 64 65

36 Reinforcing System Safety and Ensuring Service Standards % 91% Handling Multiple Disaster Simulated Drills To prevent disasters and reduce the casualties and property loss, regular equipment maintenance and equipment improvement were made to enhance equipment operational stability. In addition, multiple disaster drills were performed to reinforce staff s response to emergencies. Enhancing Disaster Prevention Checks & Disaster Prevention Capability During floods, TRTC checked the floodprevention equipment twice to discover defects and make improvement and take precautions against a calamity. Before the issuance of typhoon alerts, spot checks were performed to ensure the preventive equipment could prevent disasters and the safe operations of Metro and provide people with reliable transportation services. The first check on floodprevention equipment in 2004 included 40 sites, stations, underground streets, and parking lots, with a total of 234 check items. The second check included 27 sites, stations, underground streets, and parking lots, with a total of 224 check items. During the first and the second check, tracking of defects and improvements were made. In addition, floodprevention equipment conferences and floodprevention meetings were held to evaluate floodprevention procedures to enhance disasterprevention capability

37 Reinforcing System Safety and Ensuring Service Train Appropriation Ratio of Metro System Metro Train Repairs To enhance system security and ensure system operations, routine repairs and maintenance and major metro train repairs were implemented. Medium capacity transit system and mass rapid transit system achieved 90% appropriation ratio and 91% respectively. The schedule for major repairs in 2004 was as follows: Primary repairs for medium capacity metro trains (600,000 km): They were implemented in March By the end of 2004, repairs for 27 trains were completed, and the repairs for all the trains (51 trains) will be expected to be completed in Threeyear major repairs for 301 mass rapid transit system trains: They were started in February 24, By the end of 2004, repairs for 11 trains were completed, and repairs for all the trains (22 trains) were expected to be completed in November Sixyear major repairs for 321 mass rapid transit system trains: They were started in June 16, By the end of 2004, repairs for 14 trains were completed, and repairs for all the trains (36 trains) will be expected to be completed in February ISO 9001 Quality Management System Integration = / = / Medium Capacity Transit System train appropriation ratio = Average number of appropriate paired trains / Total number of paired trains Mass Rapid Transit System train appr opriation ratio = Average number of appropriate trains / Total number of trains With the inauguration of routes and quality requirements, ISO 9001 Quality Management Systems were introduced at different stages, in line with operation and repair technology advancement. Five quality management systems have been formulated. They include: Muzha Line Passenger Transportation Services, Muzha Line Train Repair Services, and Muzha Line Electrical and Mechanical Equipment Repair Services, Mass Rapid Transit Passenger Transportation Services, and Mass Rapid Transit Train Repair Services

38 Reinforcing System Safety and Ensuring Ser vice Standards Since 2004, FiveinOne Integration of ISO9001 Quality Management Systems has been implemented to reduce five quality management system interfaces, including the frontend Passenger Transportation Services and backend Repair Services and integrate the transfer protocol interfaces for Passenger Transportation Services and Repair Services in accordance with its mission of Providing Safe, Reliable, Cordial, and HighQuality Tr a n s p o r t a t i o n Services. The Bureau of Standards, Metrology and Inspection, MOEA, issued the ISO certification to the TRTC on December 23, 2004 for the fiveinone integration of quality management systems. Increasing the Reliability of the Mass Rapid Transit Train Operation Control Center ISO 9001 ISO ISO ISO To prevent the operation co ntro l center from equipment damages an d operation failure due to natural disasters, terrorist attacks, or other conditions, remote backup mechanisms were studied and formulated. By the end of 2004, the Mass Rapid Transit Train Operation Control Center was completely constructed at Beitou Depot and can replace the existing operation control center if necessary, so as to reduce incident processing time and the effects of equipment abnormality on system operations. In addition, this operation center can be used for simulation training. As for medium capacity rapid transit trains, overall evaluation will be performed until the Neihu Line is inaugurated. Building up the Electronic Circuit Board Inhouse Repairing Capability On May 30, 1996, technical staff members of Matra Transport, Taiwan Branch (France) suddenly withdrew from the project, in hopes of requesting the TRTC to accept higher repair fees and unreasonable job contents. Considering sustainable operations and technical independence, a research team was specially set up. Its duties included : circuit board failure repairs, development of automatic testing equipment and repair tool, repair procedure improvement, correction of electricity meters, high resistance meters, power suppliers, and oscilloscopes, and cooperation with local research institutes in introducing new repair technology. Compared with repairs outsourcing, this saved NT$87,690,000 for R&D and repair costs in 2004 and also effectively cut repair time. Its future jobs include: equipment automatic correction and data emanagement, deployment of automatic testing equipmentplanning capacity, construction of environmental testing laboratory and Surface Mount Devices (SMD) repair c a p a c i t y, accreditation of ISO9001 repair p rocedures, thereb y greatly enhancing inhou se repair capacity , 769 e (SMD) IS

39 Promoting International & Academic Exchange Promoting International & Academic Exchange S M R T In hopes of promoting the exchange between the local and foreign transportationrelated associations, professional knowledge and experiences are exchanged to promote the planning and design of transportation systems, incident risks and business management and expand international perspectives and reputation. The achievements made in 2004 are given as follows: 1.Enhancing International Exchange and Acquired Management Experiences and Technology On March 26, 2004, TRTC signed an agreement for research & learning exchange with Seoul Metropolitan Rapid Transit Corporation (SMRT). The SMRT dispatched staff members to the TRTC, and a total of 51 staff members participated in these exchange programs on information, security, planning and management, repairing, station services, operation control and ticketing services. It was expected that TRTC visited the SMRT to exchange experiences on transportation services, repairing and management. The average daily transport volume of the SMRT is 2.5 million trips/day. Therefore, it has accumulated a lot of management experience, including threats of Metro explosion, Metro strikes, Metro arson, Metro extended constructions, operation control upgrading, integration of old systems, etc. All these experiences can be taken for future reference. 2.Promoting Academic Exchange & Organizing Symposiums To promote the staff s acquisition of new knowledge and experiences, symposiums on transportation issues were held to upgrade the professional management skills and corporate image. The following activities were held in 2004: 2004 Annual Meeting & Symposium for International Chinese Transportation Professionals Association Between February 11 and 13, 2004, the Fifth AsiaPacific Transportation Development Conference and its 17th Annual Meeting & Symposium for International Chinese Transportation Professionals Association was held in Ta i p e i s Howard Hotel. Between February 1 2 and 1 5, exhibitions were held in Taipei Main Station. During these activities, industrial leaders, government officials, and scholars on transportation issues were invited to discuss Taipei Metro construction achievements and prospects, international airport designs, privatization of transportation 72 73

40 Promoting International & Academic Exchange , , , 456 5, ,400 businesses and Ta i w a n s aviation industry development. Through this meeting, new knowledge and experiences were exchanged; corporate image and reputation were also boosted and exchange channels and friendships were built between local and foreign org a n i z a t i o n s Annual Meeting for Taipei Society for Traffic Safety On November 26, 2004, the 2004 Annual Meeting for Taipei Society for Traffic Safety was held in the Conference Hall at Beitou Depot. During the meeting, Ye Jinchuan, Vice Mayor of Taipei City, delivered a speech and granted awards for the Children s Safety Chair Drawing and Slogan Design Competition and Outstanding Traffic Staff. This was followed by an indepth Metro Trip and recreational facilities experience Annual Meeting for the Rail Engineering Society of Taiwan On December 17, 2004, the 2004 Annual Meeting for the Rail Engineering Society of Taiwan was held in the Conference Hall at Beitou Depot. Yu Fan lai, Deputy Minister of Ministry of Transportation & Communications was invited to deliver a speech. Moreover, Chung Weili, chief of Bureau of High Speed Rail and Li Chung, chief of Labor Safety Office of T RTC delivered a speech on CKS DepotMetro Linking Project and Metro Disaster Prevention Project respectively. They were arranged to visit Beitou Depot in the afternoon and observe a demonstration of the effects of lightning on train welding and maintenance of machines and tools. 3.Promoting Metro Travel & Boosting its International Image Participated in the Exhibition Tokyo Travel Cooperated with the Ministry of Transportation & Communications and the travel industry service providers, the TRTC participated in the Tokyo Travel exhibition to promote the Metro Travel of Taipei City between September 22 and 26, ,000 Japanese Metro Travel Leaflets were distributed on the site. Participated in Asia Network of Major Cities 21 (ANMC21) Participated in Asia Network of Major Cities 21 in Indonesia between November 21 and 24, During the exhibition, Metro train models and electronic driving simulation games were showcased. Metro country leaflets in se veral langua ges (Englis h, K orea n, Indonesian, and Malay) and 2,000 Metro tour leaflets (in English) were distributed. Moreover, exchanges were made between several Asian cities, including Tokyo, Seoul, Singapore, and Hong Kong. Participated in 2004Taipei International Travel Fair Between November 18 and 21, 2004, TRTC participated in the 2004 Ta i p e i International Travel Fair. During the exhibition, 114,456 visitors visited the exhibition, and 5,000 Metro tour leaflets were distributed, which enhanced the travel promotion of T RTC. In addition, Metro products and oneday tickets were promoted on the site to increase revenue. To revitalize the image of the Taipei Metro, Metrorelated information was designed as questionnaires, and 1,400 visitors participated in these quizzes, which enhanced the attraction of these booths and reinforced people s interaction with and understanding of TRT C

41 10 Tenth Anniversary Celebration Activities Activities in Celebration for the 10 th Anniversary S A R S LED TRTC has been established for ten years since July 29, Due to the dedication of all staff members, car fires and flats on Muzha Line, the withdrawal of Matra Transport, Taiwan Branch (France), no support for spare parts, lightning strikes, Metro flooding caused by Nari Typhoon, and the outbreak of SARS were tackled, thereby showing its good service quality and management achievements. In commemoration of its tenth anniversary, a series of activities were held. During its celebration on July 29, Mayor Ma, Li Hsin, deputy speaker of Taipei City Council, Fai Hrongtai, city councilor, and the past directors participated. During the celebration, Mayor Ma encouraged the staff by the saying, It takes 10 years to grow a tree, while a sound education program may require 10 times before it takes root and encouraged the TRTC to create another 10 golden years, using its efficient management techniques and experience. M o r e o v e r, the 24hour Call Center was inaugurated and then Mayor Ma and the guests watched the 1 0 t h anniversary d ocumentary film. At 4p.m., the two highresolution 236inch LED TV walls were inaugurated at Metro transfer stations (ZhongxiaoFuxing Station and Taipei Main Station). Opening Ceremony of the 24hour Call Center During the 10 th anniversary celebration on July 29, 2004, Mayor Ma was invited to host the inauguration ceremony. The establishment of the 24hour Call Center marked the nonstop operations of TRTC. For more information, just call (02) Symposium About Transportation Technology At 2p.m. on July 27, 2004, the Symposium about Transport Techno lo gy in Com memo ratio n of th e 10 t h An niversary of TRTC was held in the TRTC Adm inistrative Building. During the symposium, more than 200 experts and scholars in the Industrial Technology Research Institute (ITRI), the Construction and Planning Agency, Ministry of Interior, universities and colleges, Taiwan High Speed Rail, and Ministry of Transportation and Communications participated to discuss the development and applications of mass transit systems and the transit system operational safety and firefighting measures. Exhibitions of Tickets & Posters Since the inauguration of Metro in 1996, several commemorative tickets and posters have been issued. To call commemorative tickets and posters to people s mind, Exhibition of Tickets and Poste rs In 76 77

42 10 Tenth Anniversary Celebration Activities S t y l e F a s h i o n I d o l S i g h t Festival 5 2 7Metro Life HAPPY METRO TEN1 0 Commemoration of the 10th Anniversary of TRTC was held in the art gallery and concourse of ZhongxiaoFuxing Station between July 28 and August 31, During this exhibition, a selection of 320 representative tickets and 81 posters was showcased. Through the recollection of original ticket versions, it conveyed the TRTC s commitment to its passengers and called the issuance of these tickets to people s mind. Posters symbolized the interaction of passengers with TRTC and acted as an emotional bridge for the two parties. Tenth Anniversary Retrospect To give TRTC s new staff members and the society a deeper understanding of the history of the Taipei Mass Rapid Transit System and convey the corporate spirit and culture of defying hardship and danger; the worse a setback the braver it is to overcome it, it specially produced the TRTC 10 t h Ann iversary Documen tary and th e TRTC 1 0 t h Ann iversary Ed ucational Documentary Film and sent them as gifts to the staff to share the joy of the growth of Taipei Metro. The documentary films were collections of major incidents and historical information since the inauguration of Taipei Metro as well as the indepth interviews with experienced staff members to reveal the untold secrets behind challenges and obstacles and record the pains and fearless spirit of those who dedicated themselves to the TRTC. To toil but harvest joyfully has recorded the hardships they have tackled and the achievements they have made. To give a clearer picture of its history, reference has been made to the related newspaper clippings since the establishment of TRTC in order to reshape the details in the development of Taipei Metro. These documentary and images have completely captured the growth of Metro and made a great stride in passing down TRTC s experience. TRTC s Staff ParentChild Day In commemoration of the 10th anniversary of TRTC, the TRTC s Staff ParentChild Day was held on July 24, Using the facilities of the Beitou Depot, family funfests were organized to give the staff s family members a better understanding of their working environment and share their achievements and joy. On the same day, Beito Depot was fully openet for visit. Visitors are welcome to see the trainees dormitories, repair plants, control towers, and offices. The activity center was also free for entrance. Further more, several parentchild activities and games were planned. Free food and drink were also provided. 10 th Anniversary Souvenirs & Commemorative Tickets Commemorating the tenth anniversary of TRTC, 27 Metro Life souvenirs under the themes of Style, Fashion, Idol, Sight, and Festival were designed. In acknowledgement of the dedication and contribution of the staff, the HAPPY METRO TEN commemorative tickets were sent as gifts to the staff

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