The Taiwan Railways Administration (TRA) said on Thursday it was considering accepting the terms of a settlement proposed by the Public Construction Commission which would allow the contractor of the EMU800 train system to use a Japanese brake system.
In 2011, the railway agency contracted state-run Taiwan Rolling Stock Co (TRSC) to build 296 EMU800 commuter train carriages, with the first batch of 16 carriages being built in Japan and the remainder being built in Taiwan.
Prior to signing the contract, the agency had listed three different brake systems that could be used in the new trains, with a German brake system topping the list, followed by the Japanese one. The contractor chose the German brake system.
However, the TRA found during an on-site inspection in Japan that the contractor had used the Japanese brake system rather than the German one, without informing the agency. The TRA asked the company to address the problem within a designated period, or it would fail a final inspection of the train carriages.
The TRSC said it might have to declare bankruptcy if it fails to deliver on the NT$15.4 billion (US$515.6 million) contract.
The dispute between the TRA and the contractor eventually went to the Public Construction Commission for arbitration, which has proposed that the two parties reach a settlement under four conditions. First, the two must establish testing and inspection procedures for the first batch of 16 train carriages. Second, since using the Japanese brake system would save the contractor about NT$99.5 million in manufacturing costs, the TRA is entitled to deduct the stated amount from their original agreement. Third, the warranty period for the brake system is extended from three to four years; and fourth, the backup supplies of air compressors are to be increased by 50 percent.
In addition to those terms, TRSC agreed to deduct NT$5 million from the contracted sum as the arbitration had saved the contractor from a potentially expensive lawsuit.
Ho Hsien-lin (何獻霖), director of the TRA’s Rolling Stock Department, said that after consulting with the agency’s lawyers, it is considering accepting the terms of the settlement.
He said that the terms would be executed following a final confirmation from the commission.
The dispute had delayed the delivery of the first 16 train carriages, which were scheduled to arrive in September last year.
Ho said the TRA would ask the contractor to speed up the delivery of the first batch.
The EMU800 commuter trains are to be used to increase the number of train services to the east coast, following electrification of the railway line between Hualien and Taitung. The new trains are also to be deployed to carry commuters between Keelung and Hsinchu, the largest commuter corridor in northern Taiwan. Some of the old trains may be retired after the addition of the new trains, Ho said.
Despite the settlement, Ho said the railway agency would still follow the contract in terms of the penalties imposed on contractor if it fails to deliver the train carriages.
The contractor will face a fine of NT$770,000 per day for each day it misses the deadline stated in the contract, Ho said, adding that it would include the time spent settling the dispute.
The agency estimated that the first batch of trains should arrive in September and the new trains could be used to carry passengers by the Lunar New Year holiday next year.
READY: The CGA said it closely monitored China’s maritime exercise, deployed vessels to shadow the Chinese ships one-on-one and set up emergency response centers Chinese navy and coast guard ships have returned to China, signaling the end of a massive maritime exercise, authorities said yesterday. The Coast Guard Administration (CGA) released images it said showed Chinese vessels sailing north in rough seas past Taiwan on Thursday, on their way to China. “All the Chinese coast guard went back to China yesterday, so although they have not officially made any announcement, we consider it over,” CGA Deputy Director-General Hsieh Ching-chin (謝慶欽) said. Beijing has not confirmed the drills and the Chinese Ministry of National Defense did not say whether the maneuvers had taken place when asked at a
People can take the Taipei MRT free of charge if they access it at Nanjing Sanmin Station or Taipei Arena Station on the Green Line between 12am and 6am on Jan. 1, the Taipei Department of Transportation said on Friday, outlining its plans to ease crowding during New Year’s events in the capital. More than 200,000 people are expected to attend New Year’s Eve events in Taipei, with singer A-mei (張惠妹) performing at the Taipei Dome and the city government’s New Year’s Eve party at Taipei City Hall Plaza, the department said. As people have tended to use the MRT’s Blue or
PUBLIC TRANSPORT: As some roads would be fully or partially closed, people are advised to take the MRT, with services expanded to accommodate more riders This year’s Taipei Marathon, which has obtained its first gold label certification from World Athletics, is to be held from 5am to 1pm tomorrow and would have 28,000 participants. The race is to start from the Taipei City Plaza and would go through major roads throughout the city, with traffic control implemented from 6am to 2pm, officials said. The Taipei Mass Rapid Transit (MRT) system and New Taipei City MRT Circle line would start operating at 5am on the day of the race, they said. The race would cover Renai Road, Xinyi Road, Hangzhou S Road, Aiguo east and west roads,
Taiwanese professional baseball should update sports stadiums and boost engagement to enhance fans’ experience, Chinese Professional Baseball League (CPBL) commissioner Tsai Chi-chang (蔡其昌) told the Liberty Times (sister paper of the Taipei Times) in an interview on Friday. The league has urged Farglory Group and the Taipei City Government to improve the Taipei Dome’s outdated equipment, including relatively rudimentary television and sound systems, and poor technology, he said. The Tokyo Dome has markedly better television and sound systems, despite being 30 years old, because its managers continually upgraded its equipment, Tsai said. In contrast, the Taipei Dome lacked even a room for referees
RSS