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The train was traveling between the towns of Shulin and Taitung when it derailed Sunday on a coastal line apparently popular with tourists.
The train was carrying 366 passengers when the accident occurred shortly before 5 pm local time, the Department of Transportation announced.
The eight cars were derailed during the incident and five of them returned, the ministry said.
A 43-year-old American woman was among the wounded, according to the ministry. She was sent to a local hospital.
The cause of the derailment is under study.
