Taiwan’s High-Speed Rail: A Public-Private Partnership Hits a Speed Bump

Running head: PROJECT INITIATION MANAGEMENT
TAIWAN’S HIGH-SPEED RAIL: A PUBLIC-PRIVATE PARTNERSHIP HITS A
SPEED BUMP
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1PROJECT INITIATION MANAGEMENT
Introduction
The following report reflects on the timeline and implementation of the high-speed
project of the railroad in Taiwan. The project was started in the year 1980 and continued up to
the year 2009(Garrido et al. 2017). Large stages of analysis of steps are involved in
understanding the potentiality of the given problem like cost-benefit analysis, proper financial
planning and lastly analyzing the feasibility of the project. In the beginning, the project was
considered to be step up as a privately run infrastructure but later the project was taken as public-
private. After completing the operation, the organization was responsible for any kind of
construction and operation behavior (Stalker, 2017). It has ultimately reduced the rate of
leadership and global depression. The private section of the Ministry of Transport and
communication of Taiwan look for a request that corporation is unable to repay the loans. It
ultimately gives the railroad for the given government to easily operate. The final account should
be taken into account behind the final response of above-stated response.
In the coming pages of the essay, an idea has been provided regarding the request of
THSRC. After that, more detail analysis of requirements of FEP has been provided. The whole
process or method of developing PDRI has been discussed. Various concepts and roles of front-
end project manager have been discussed in details. An evaluation has been done regarding the
quality of FEP activities in the project has been demonstrated by making of FEP framework. In
the last section of the report, a proper difference has been provided regarding project success and
project management success.

2PROJECT INITIATION MANAGEMENT
Discussion
Taiwan High-Speed Rail Project is expected to be 15 billion dollars’ project. It is
considered to be largest and most challenging infrastructure type of projects in the world till now
(Hsu et al. 2015). It is expected to be scheduled by the year 2005. The 345 km rail system has
been designed for trains which travel at the rate of maximum speed of 350 km/hr. Any kind of
lack of natural resources has made Taiwan independent on the given foreign investment. The
construction industry institute focus in developing a tool which is used in front-end planning
(FEP). This particular tool which is known as project definition rating index (PDRI). PDRI is
much focused to be used in various kinds of industrial projects (Chou, Lu and Chang, 2014).
PDRI tool has been designed for understanding the measures the degree and scope of the project.
It helps in understanding the scope definition of a project and helps in understanding the strength
and weakness of the overall project cycle.
In the 1980s, the economy of Taiwan is much focused on the development of fast and
proper living standards of the locals which has helped in the development of a strategy of the
given country (Li, Schmöcker and Fujii, 2015). Ultimately, economic development has
ultimately come with a demand for transport between Taipei and other cities associated with it.
The given project was proposed a proper outline which has been given by Taiwan High Rail
Cooperation (THSRC). This particular cooperation won the right for construction and focus on
operating in proper handling over the given government. The project come up with massive
investment for a value of 10 billion dollars but it does not lead to a successful outcome for the
given country. There are many reasons for the failure of this particular project. This HSR project
is known to be one biggest privately managed and transport project in the year of 2007.

3PROJECT INITIATION MANAGEMENT
In the year 1994, the Taiwan government passed a law which requires the involvement of
both private capital infrastructure projects which is also being applied to THIS project.
Thereafter in the year of 1995, provision engineering officials of High Rail Speed (POHSR) was
changed into the Bureau of High-Speed Rail. It was started to tender THSR which is used for
building operation transfer scheme in the year 1996 (Pan, Lin and Chen, 2015). In the given
bidding method, Taiwan High Rail Consortium (THSRC) focus to run against the Chunghwa
High-Speed Rail Consortium (CHRSC). THSRC was founded by five domestic organizations
and aims in submitting much cheaper things by promising to pay around 3.1 billion dollars. It
expected to build the line with zero net cost for the government and was preferred bidder in the
year 1997. The group can be renamed and formally established as THSRC (Taiwan High-Speed
Rail Corporation) in 1998. THRSC and the government of Taiwan signed a proper agreement in
the year of 1998.
A public-private partnership has ultimately enhanced the importance in construction
project and its operation of a high-speed railway network around the world. By understanding
the measures of Taiwan high rail speed which aims in providing a connection between island
nation between north and south can be considered to be a success (Chou et al. 2017). Between
the year 2006, the number of passenger miles traveling by train in Taiwan has increased a lot.
The frequency of various passengers on domestic’s air has been reduced by 53 percent. By the
year 2009, the high value of ridership on some of the densely populated routes can easily
different organization to easily build the line which can start from turning an operational profit.
However, Taiwanese taxpayers need to pay the much higher price rather than its success is
anticipated. In the initial stage, the private organization needs to pay for the entire cost for
construction of given line. Rather than Taiwan taxpayers need to be just a part of the entire