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Localized Supply Chain

Local Procurement

In addition to actively localizing technology and equipment, THSRC has implemented a localized procurement strategy on the premise of ensuring the safety and quality of equipment. This strategy not only decreases reliance on foreign suppliers, but also reduces equipment replacement costs and lead times. We also help the local suppliers of rail transportation industry to take this opportunity to obtain certification of the international railway industry standard quality system, greatly enhancing the image and popularity of the domestic rail transportation industry.

In 2023, the total amount of material purchases conducted by THSRC was approximately NT$3.297 billion, where the amount of procurement from local suppliers accounted for 60.17% of the total amount. Meanwhile, the amount of labor service procurement in 2023 exceeded NT$9.766 billion, of which 98.9% came from local service procurement. In addition, in March 2023, THSRC completed the train procurement of 12 sets of new-generation trains with 124.091 billion yen, but it is not included in the calculation due to its project nature.

Local Procurement Amount Ratio

Local Development

In the efforts to promote the growth of local rail technologies and capabilities, THSRC has made multiple visits to suppliers seeking alternative regional materials. In 2023, we successfully completed 114 alternative sourcing cases, after visiting a total of 230 local suppliers. Through joint work with 135 alternative materials-developing suppliers from 2011 to 2023, we were able to save approximately NT$3.6 billion. In addition to expanding our recruitment of manufacturers, THSRC has also broadened our cooperation with industry, government, academia, and research to jointly developed high-speed railway equipment and system innovation technology. Through these efforts, we have contributed to the localization of railway transportation and achieved our goal of "Localization of Domestic Vehicles." In 2023, relevant cooperation projects include:

  • Since September 2018, we have collaborated with China Steel Corporation on the "Overhead Catenary System (OCS) Maintenance Vehicle Localization" project. Our efforts included integrating equipment component specifications, and pooling supplier resources. As a result of equipment localization, we have effectively reduced maintenance and inventory costs while improving maintenance quality and local equipment/material supply ratio. By December 2023, we had delivered twelve OCS maintenance vehicles in order to achieve the goal of phasing out all the old OCS maintenance vehicles.
  • In 2021, THSRC R&D team successfully developed the "Turnout Control Cabinet" and has now put into use equipment in 17 locations at Changhua Station, Yunlin Station and Chiayi Station, continuously optimizing circuit design and improving equipment efficiency, and gradually replacing the original German-made Turnout Switch Control chassis. By optimizing the circuit configuration and box design, it not only effectively prolongs the service life of the equipment, but also improves the reliability of the system. In the future, it will be replaced in batches in five years, and it is expected that the replacement of the existing chassis of the whole line will be completed in 2026. The "Turnout Control Cabinet" is 100% independently developed. It is the first example in the world of introducing programmable logic control technology into a turnout control chassis, which greatly reduces the probability of relay damage and improves maintenance efficiency. In addition, in order to properly protect the results of independent research and development, the new model patent has been obtained in June 2023 and approved by the Intellectual Property Office of Invention Patents in May 2024.
  • In 2021, THSRC independently developed a new generation of local "turnout monitoring system", through the digital transformation project, THSRC redesigned the intelligent turnout monitoring system, in addition to the original monitoring function, and added big data analysis and prediction reports, early warnings, display real-time, and historical analysis reports. Before a turnout fails, maintenance and adjustment can be performed in advance to prevent it before it happens and can greatly improve system reliability and rapid repair. In April 2024, the new patent for the turnout monitoring system has been approved by the Intellectual Property Office.

THSRC has launched a new 5-year medium and long-term plan from 2023 to create a "Safety ride" environment for passengers, encourage people continuously support public transportation after the pandemic, and work with domestic manufacturers to develop new passenger information display systems, and replace the original LED screen form with a 4K high-quality full-color LCD screen, continue to increase the localization of maintenance materials.

Local Business

To promote the growth of local industries and capitalize on local business opportunities, THSRC has established high-speed rail markets and local production halls throughout the operations in Taiwan. These facilities support the production of local raw materials and creating local employment opportunities through concrete actions such as low rental fee for local business.

  • Taiwan Hakka Creative Souvenired Guaranteed Liability Yun-Lin County Qiong Pu Cooperative Farm were commissioned to operate the product hall at a lower rent in Miaoli and Yunlin stations, and the goods in the pavilion and market are all produced by local small farmers or merchants, which can reduce the relevant management and marketing costs, and sell directly to passengers at an appropriate price.
  • There are high-speed rail market counters at all stations, mainly for local business stationing, such as Taoyuan (Rren nougat), Hsinchu (Chunsun pudding cake) and others. We continue to assist local business in creating employment opportunities.