The Taiwan High Speed Rail opened, connecting Taipei and Kaohsiung.

Taiwan High Speed Rail (THSR) is a high-speed railway network in Taiwan, which consists of a single line that runs approximately 350 km (217 mi) along the western coast of the island, from Taipei in the north to the southern city of Kaohsiung. Its construction was managed by a private company, Taiwan High Speed Rail Corporation (THSRC), which also operates the line. The total cost of the project was NT$513.3 billion in 1998. The system's technology is based primarily on Japan's Shinkansen.

Taipei, officially Taipei City, is the capital and a special municipality of Taiwan. Located in Northern Taiwan, Taipei City is an enclave of the municipality of New Taipei City that sits about 25 km (16 mi) southwest of the northern port city of Keelung. Most of the city rests on the Taipei Basin, an ancient lakebed. The basin is bounded by the relatively narrow valleys of the Keelung and Xindian rivers, which join to form the Tamsui River along the city's western border.

Kaohsiung, officially Kaohsiung City, is a special municipality located in southern Taiwan. It ranges from the coastal urban center to the rural Yushan Range with an area of 2,952 km² (1,140 sq mi). Kaohsiung City has a population of approximately 2.73 million people as of October 2023 and is Taiwan's third most populous city and largest city in southern Taiwan.