KR to lead global railway market

Indonesian government officials pose at the construction site of the Honam high-speed railway in May. They visited Korea for 10 days on a training course offered by the Korea Rail Network Authority, to learn how to draw up a master plan and conduct feasibility studies for railway projects. (Photo : Korea Rail Network Authority)

Korea Rail Network Authority (KR), the state-run railway builder and maintenance manager, is stepping up efforts to share its knowhow with developing countries as trains have emerged as a preferred, sustainable means of transportation across the world.

It has offered China and other developing economies construction supervision and consulting management assistance in railroad projects over the years. KR now wants to take a step further to become a globally-competitive designer, builder and maintainer of high-speed railways amid the rapidly growing market.

“We have made inroads into foreign railway markets including China, Southeast Asia and the Middle East. By capitalizing on our successes here at home, we aim to emerge as a truly global player in a railway renaissance,’’ a KR spokesman said.

KR has constructed an extensive railway network throughout Korea over the decades. It also completed a high-speed railroad connecting Seoul to Busan in 2004.

It is currently building a new line in the southwestern part of the country and has been bidding to take part in bullet train projects in Brazil and other developing nations.

“Governments around the world have begun paying more attention to railways as sustainable means of transportation in recent years amid the growing awareness of global warming. Railroad is green transportation, which does not generate as much carbon dioxide and other greenhouse gases as automobiles and airplanes do,’’ the spokesman said.

Countries have also been making larger investments to expand their railway networks as part of efforts to create jobs and improve industrial infrastructure since the global financial crisis in late 2008.

The international railway market is projected to reach 250 trillion won by 2015; with Asia becoming the world’s largest.

“We would like to take advantage of the booming global market by forging partnerships with developing countries in Asia and Africa. We can help them draft a master plan, and design and construct railways. We will also provide them with knowhow on how to manage and operate them,’’ he said.

KR set up an overseas business division in 2004 and since then, it has secured a total of 24 projects in 12 countries. It mostly provided construction supervision and management consulting in China, Cameroon and other developing nations.

“Through these projects, we have built an extensive human network of government officials and businesspeople in host countries. We would like to form a consortium with construction firms and other private entities to take on large-scale railway projects,’’ the spokesman said.

To boost its global presence amid intensifying competition, KR plans to enhance its technology, boost marketing activities and expand business networks.

“Given our experience in building and managing extensive conventional railway networks and high-speed railways, our technological prowess is on par with those of advanced countries. We are more price-competitive. What we need to do is to build up a track record abroad,’’ he said.

KR plans to first secure small-scale projects, and transfer its knowledge on railway systems in return for orders.

The company is also considering offering packaged deals to developing nations that are financially struggling but resource-rich. For instance, it can build and manage railways in exchange for development rights for oil fields and mineral mines.

“We will continue to hone our technological knowhow and boost our financing capability by more closely cooperating with banks and financial investors. We will also make more efforts to build closer partnerships with our foreign counterparts,’’ the spokesman said. <The Korea Times/Lee Hyo-sik>

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