For the purpose of operating national railways, the competent authority may establish a national railway institution; the establishment of which shall be stipulated separately by law.

National railways, with the exception of those whose main businesses is passengers and freight transportation, may conduct the following affiliated businesses:
(1) Piers and ferry transportation businesses of railway transportation.
(2) Automobile transshipment businesses of railway transportation.
(3) Receiving, delivering, reporting to customs, and storage business essential to railway transportation.
(4) Repair and manufacture of instruments and equipment essential to railway transportation and build.
(5) Other businesses essential to the cultivation and prosperity of railway transportation.
The rules of applied procedures, ratified conditions, operation, accounting, supervision and other relevant matters of the aforementioned affiliated businesses of national railways shall be provided by the MOTC.

The national railway institution using adjoining public real estate to operate railway business or handling affiliated businesses in the preceding article, shall pay or lease said real estate for a fee, and shall consider the impact on public welfare.
The national railway institution, upon approval by the competent authority, may handle the development, disposal, or earnings of the state owned real estate it manages, and is not subject to the restrictions stipulated in Article 28 of the National Property Act. If the disposition is for sale or a superficies right is set for a certain period, it must seek approval from the Executive Yuan.
The regulations for the development methods, planning, procedures, deliberations, operation, supervision and management, dispositions, earnings, and other related matters referred to in the preceding paragraph shall be determined by the competent authority.
If the real estate in Paragraph 2 is an asset of the national railway institution, the earnings shall be recirculated through the institution for utilization.
When the real estate development in Paragraph 2 involves changes in urban planning, the competent authority must coordinate with the competent authority for urban planning to handle rapid changes in accordance with the provisions of Article 27 of the Urban Planning Law; for non urban land use changes, the competent authority shall comply with the relevant provisions of the Regional Plan Act or the Spatial Planning Act.
For urban plan changes referred to in the preceding paragraph, reasonable land use zoning categories shall be established, appropriate land development intensity and allowable usage items shall be determined; the burden of development obligations of the national railway institution shall be moderately reduced, and the regulations shall be determined by the competent authority of the target business.

National railways transportation shall be uniformly dispatched and administered; its measures shall be provided by the MOTC.

(deleted)

In the case of business demands, national railways may apply to the MOTC to report to the Executive Yuan for ratification to issue government bonds or borrow foreign capital according to relevant laws.

Accounting of national railways shall be provided by the railway accounting system.

Computation formulas for national railways transportation fare rates are drafted by the MOTC, reported to the Executive Yuan, and validated by the Legislative Yuan; computation formula modifications shall be conducted following the same procedures.
National railways transportation prices shall be computed according to the aforementioned formulas, reported by the MOTC to the Executive Yuan for ratification; transportation price modifications shall be conducted following the same procedures.
National railways may set lower transportation prices under special circumstances or situations. Temporary transportation prices may be set for temporary operation during construction periods. All prices shall be ratified by the MOTC.

In principle, materials for national railways shall be supplied as a whole and administered by separate regions.