TAIPEI (Taiwan News) — The transportation ministry is considering a NT$230 (US$6.93) fare hike for travel between Taipei and Kaohsiung.

The ministry reviews fares based on consumer price index fluctuations each year. Taiwan High Speed Rail fares are calculated per kilometer, with basic fares potentially increasing from NT$4.551 to NT$5.061, per UDN.

The distance between Taipei and Kaohsiung is 340 kilometers. Rail fares could rise to NT$1,720 (US$51.85), an increase of about 15%.

New-generation high-speed rail trains will become operational in 2027. Core electrical systems face costly upgrades along with a new maintenance factory, leading to a budget gap in 2026.

Transport Minister Chen Shih-kai (陳世凱) said the new trains will require costs to maintain performance and quality. Chen said he was open to discussing reasonable fare increases.

THSR said a fare hike will be determined by internal operating costs, the external socio-economic environment, market competition, and supply and demand conditions. After conducting an overall assessment, the decision will be put before the board of directors for review.

THSR said it would continue to monitor cash flow. It also pledged to use its own funds and external financing to support future operations.