Korean Railway Development Showcase
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Transcript of Korean Railway Development Showcase
The 10th
Meed Rail and Metro Summit
Oct. 20-22, 2014
1
Korean Railways Development Case
Agenda
2
Implication for MENA Region : Egypt Case
Key Success Factors of Korean Railways
Question & Discussion
Korean Railways Development Case
3
Korea has achieved outstanding economic growth. Railway infrastructure
has played a significant role.
Total 3,560km railways connect industrial parks, cities and ports, becoming blood vessels of the country.
Korea railways carry over 40% of non-urban passengers on five main routes.
In 2014, Korea has a high-tech railway system, localizing most of signaling technology.
Korea has developed its railway infrastructure within past 50 years.
Identified key success factors are;
Government leadership and staged planning
Leveraging external partnerships
Focus on capacity building and localization of technology
Implication for MENA countries for successful railway development
Strengthen regional cooperation to plan railway development
Leverage funding from multiple partners, World Bank can help
Research and cooperate with Korea, other railway leader countries, World bank can
connect
Executive Summary
4
Korean Railways
Development Case
5
Item Detail
Area 100,210 km²
Capital Seoul (10.2 million)
Population 50.22 million (2012)
Population Increase rate 0.18%(2013)
Unemployment Rate(%) 3.4% (2013)
GDP $1,305 billion (2013)
GDP per capita $25,976 (2013)
Per Capital GNI $25,920 (2013)
GDP Growth Rate 2.0% (2012)
National Independence 1945.8.15
Trade Volume (2012) Export $548 billion
Import $520 billion
Major Industry products Semiconductors,
automobiles, ships,
electronics, mobile telecoms,
equipment, steel, and
chemicals
S. Korea Country Overview
6
Past Present
Korean Railways
Major railway lines (as of Sep 2014)
Railway Development of Korea
Korean railway networks
connect industrial parks, cities
and ports, becoming blood
vessels of the country.
Korean railway network is
3,650km long, 60% electrified and
55% double-track.
Maximum speed of Korean
railway system of 300km/h
(targeting 430km/h), connecting
Seoul-Busan(450km) in 3 hours.
Korean rail started operation in
1899. Since 1963, Korail became
a single government-owned train
operator(55,000 staff) except for
urban metro lines.
7
8
Railway Development of Korea
Korea has achieved outstanding economic growth. Railway infrastructure has
played a significant role.
Rails’ share in non-urban passenger transport is 40% on main routes.
Korean railway carries 39.8M tons of freights and 27,107M passengers per year.
Between 1995~2011, passenger traffic increased 1.7 times and freight 3.8 times.
Freights volume of railways
(000s)
Passengers volume of railways
9
Railway Development of Korea
Korean government showed strong leadership and laid legal foundations for
railway sector framework and role of public corporation.
Started as Railroad Administration Bureau of the Ministry of Transportation.
In 1963, the bureau became an agency named Korean National Railroad (KNR).
In 2004, KNR was split into Korea Railroad Corporation, railroad operation company
and Korean Rail Network Authority, whose main function is maintaining tracks.
Revenue Expense Net Profit
(Annual Business Result)
($17.5 billion) ($2.5 billion)
10
Key Success Factors of
Korean Railways
11
Government
leadership
Leveraging
partnerships
Focus on
capacity
building
Success factors of Korean Railways can be summarized as well-aligned
government leadership, leveraging external partnerships, and focus on internal
capacity building.
Details
Based on clear legal frameworks
Planning aligned with Nat’l Development Strategy
Staging and fast execution of projects
Leveraging external funding such as WB
Early adoption of advanced railways technology
Focused on capacity building of public agency
Invested in localization of technology
Key Success Factor of Korean Railways
12
Korean government led the railway development under clear legal framework which
is aligned with the priorities of National Development Strategy. Also, realistic
staging of projects enabled fast execution.
Clear Legal
Frameworks
Details
Staging and Fast
Execution of Projects
Aligned with National
Development Strategy
Railroad Act(1961)
Korean Railroad Corporation Act (1989)
Korea Rail Network Authority Act (2003)
Railway Industrial Development Framework Act (2004)
Railroad Enterprise Act (2009)
5th 5yr Economic Development Plan (1983~ )
Comprehensive Development Plan of Nat’l Land (1987~ )
1st National Railway Network Plan (2006~2015)
2nd National Railway Network Plan (2011~2020)
high-speed passenger train(1994)
- 1st stage (Seoul-Busan), 2nd stage (Seoul-Mokpo)
Seoul Metro Subway(1994)
- 1st stage (Seoul-Busan), 2nd stage (Seoul-Mokpo)
ATP(ETCS-1) on board system project
- 1st phase(2003~2009) 2nd phase (2010~2012)
Government leadership
13
Government Leadership
MoT started with less than 200 staff in 1948, and currently manages under 1,000
people.
14
Leveraging
external funding
Details
Early Adoption of
advanced system
Jungang line(147.8km) extension financed by WB(1968)
Seoul-Busan(445km) ATS implementation financed by WB(1969)
Seoul-Suwon(41.5km) extension financed by WB(1977)
Taebaek line(126.9km) extension financed by WB (1983)
CTC from Westinghouse (1968)
CTC Computerization (1981)
CTC & ESI from Siemens (1977)
CTC & ESI from Kyunsam (1983)
TGV from Alstom (1994)
TVM-430 ATC on board system for Kyungbu Express line(2004)
Korean government maximized the leverage of both external and internal partners.
External funding like WB financing was used, and advanced railway technology and
systems were adopted early on.
Leveraging Partnerships
15
Korean government invested in public agency for gradual knowledge transfer and
capacity building. It also facilitated localization of technology.
Investment for independent Korean technology (1988)
First Korean localized EIS developed & tested (1993)
EIS standard regulated (1993)
First Korean EIS product was installed in Jungang line (1994)
ATC wayside, on-board device, EIS, AF track circuit localized
(1994~1996)
KTX-STX II developed
Localization of
technology
Capacity Building
of public agency
Railroad administration bureau in the MoT (1948)
Established KNR(Korean National Railroad) (1963)
Established Korail(2004) and maintained infrastructure
authority as KR(Korea Rail Network Authority)
Details
Focus on Capacity Building
16
Pre-Modern Era (1890-1940)
16
Railway
development
event
1897 1899
1910~
Under Japanese
Ruling
Major
historical
event
1st phase
Construction of
the Gyeongin
Line
Opening of
Noryangjin-
Incheon Section
Government
leadership Leverage of partnerships
Capacity Building
17
Jungang
Line
1943 1945 1948 1950~1953
Independe
nce
Korean
War
Railway
development
event
Major
historical
event
Entering Modern Era (1945-1955)
Government
leadership Leverage of partnerships
Capacity Building
Establish
ed
Ministry
of
Transport
Korean
government
established
18
Metro
subway
(Seoul-
Suwon)
1961 1963 1967 1968 1969 1974
1977 1979
1st
localized
diesel
train
Railway
development
event
Major
historical
event
Seoul-Busan(445km)
ATS implementation
financed by WB
Jungang
line(147.8km)
extension financed by
WB Seoul-
Suwon(41.5km)
extension financed by
WB CTC & ESI from
Siemens
CTC from
Westinghouse
Established Korean
National
Railroad(1963)
Development by Others (1960-1980)
Government
leadership Leverage of partnerships
Capacity Building
Railroad Act
(1961)
Railroad Transport
Business Act
Railroad Safety
Act(1979)
1981 1982 1983 1984
1988 1989 Railway
development
event
Major
historical
event
5th 5yr Economic Development Plan
(1982~86) Comprehensive Development Plan of National Land
(1982~1991)
Initiated EIS
localization
project
Taebaek line(126.9km)
extension financed by WB
CTC & ESI from
Kyungsam
CTC
Computerization
Owned Development (1980-1990)
Government
leadership Leverage of partnerships
Capacity Building
Korail Act
Established(1
989)
Public Railroad
Construction
Promotion Act(1984)
1993 1994~1996
High-speed
Railroad
Construction
Promotion
Act(1996) Project
Railway
development
event
Major
historical
event
Seoul Metropolitan Subway
Project
First Korean
localized
EIS developed &
tested First Korean EIS installed in
Jungang line
ATC wayside, on-board device,
EIS, AF track circuit localized
TGV from
Alstom
High-speed Train (1990-2000)
Government
leadership Leverage of partnerships
Capacity Building
2nd stage KTX
(Kyungchoon-
Jeolla)
1st stage
KTX
(Seoul-
Busan)
2003 2004 2005 2008
2010~2012
Locally built
high-speed
train
KTX-II
Railway
develop
-ment
event
Major
historical
event
TVM-430 ATC on board
system
for Kyungbu Express line
Korail/KR Role
divided Railways Industry Development Framework
Act (2003) Railroad Enterprise
Act(2004)
2nd National Railway
Network Plan
U$88billion (2011~2020)
Technology Frontier (2000-)
Government
leadership Leverage of partnerships
Capacity Building
KR Network Authority Act
(2003) Railroad Construction Act
(2004)
1st National Railway
Network Plan
(2006~2015)
KTX network
plan(2010)
Railroad Safety
Act(2004)
22
Implication for MENA region
23
Item Detail
Area 1,001 million km²
(95% desert)
Capital Cairo (18 million)
Population 94 million (2013)
Population Increase rate 1.6%(2013)
Unemployment Rate(%) 13.4% (2013)
GDP $262 billion (2013)
GDP per capita $3,314 (2013)
Per Capita GNI $3,160 (2013)
GDP Growth Rate 1.8% (2013)
National Independence 1922. 2. 22
Trade Volume Export $24.81 billion
Import $59.22 billion
Major Export Products
Crude Oil and Petroleum
products, Cotton, Textiles,
Metal Products, Chemicals,
Agricultural goods
Egypt Country Overview
24
Railway Development of Egypt
Egypt railway was the 1st railway network
constructed in Africa with the longest line. It
started operation in 1856, and now
maintains 5,085 km route.
Egypt National Railways manage total
route of 5,085km, but only 63km is
electrified and 1,466km is double-track.
Egyptian National Railways carry 12.5M
tons of freights and 842M passengers per
year.
Maximum speed of train is 60-80km/h for
passenger train and 50-70km/h for freight
train
Operating income was 600M LE and
expenses reached 800M LE.
63,520 staff employed in ENR(Egyptian
National Railways)
25
Egyptian Railways use only 20% of electric
signaling system (adopted from Alstom, Siemens,
Eliop, Thales), depending highly on mechanical
signaling system(80%).
Egypt Railway has experienced serious train
accidents from derailment, train crash or signaling
mistake in the last decade.
Egypt Railways
26
Nagh Hamady ~ Luxor
section (118km)
EIS (Electronic
Interlocking system)
installations in 24
stations
Loan amount: U$114 M
Period : 2015~2017(3yrs)
Korean Government-financed Project
27
Cairo ~ Alexandria Line
(217.6km)
Beni-Suef ~ Asyut Line
(210.6km)
10 EIS installations
Loan Amount : U$600M
Period
- Approved in 2009 & 2010
- Restructured in 2014
- Under implementation
World Bank-financed Project
28
Item Total
1. Direct project cost 98.4
1.1. Signaling Modernization
Including Electronic interlocking
system, ATC(ETCS-1) on board
system, CTC, Communication Facility
(Network)
89.9
1.2 Consulting services &
Education/training, maintenance
support
8.5
2. Taxes and the public utilities 1.6
3. Reserve Fund (Contingencies) 16.5
4. Indirect cost (Loan handling fee) 0.1
Total project cost 116.6
Item Total
1. Direct project cost 631.0
1-1. Signaling Modernization 511.5
1-1A. Signaling Modernization
Cairo(Arab El Raml) to Alexandria
174.5
1-1B. Signaling Modernization
Beni Suef to Asyut
337.0
1.2. Renewal of 200 km track
Cairo-Aswan line renewal (60km)
106.0
1.3. Modernization of Management &
Operating Practices
13.5
2. Contingencies & front end fees 14.0
Total cost project 645.0
(Estimated, USD million)
Project cost estimates
Korean Gov’t financed (to be) WB-financed
29
Geographical
factor
Socio
demographic
factor
Industry
Factor
Details
Large land and deserts require reliable land transport system
Railway networks needed for other development projects and
logistics (e.g. electricity, construction, labor, etc.)
Regional Cooperation(e.g. GCC Railway Projects) opportunities
Railway operations itself can be generating revenue.
Railway can create synergy with other industry
(e.g. tourism, agriculture or mining).
Railway can facilitate local development by providing access to
people, information and opportunities
Increasing population and high unemployment rate
Urbanization like housing shortage & road congestion
People want connected, safe and freedom to move.
Economic Potentials of Railways in the Region
30
Strengthen regional
cooperation in
planning
Leverage global
partnerships for the
best knowledge and
experience
Focus on
capacity building
Details
Review governance and establish national legal framework
Maximize regional cooperation
Own the planning process and align with industry strategy
Focus on responsible execution through staging
Collaborate with WB, regional and bilateral development
banks as partners.
Adopt the best available knowledge and technology in the
world, and learn to own and internalize it.
Invest in people and key agencies with a focus on
knowledge and know-how transfer
Expand partnerships and communicate through projects
Implication for the Region
31
GCC Railway Project
MDBs like World
Bank or Regional
Banks
Emerging partners in
other regions like
Korea and China
Details
Over 10,000km of railways worth of $200 billion investment
Best way to institutionalize “learning by doing”
Excellent source of knowledge and expertise in proximity
WB remains as one of the largest financier and committed
to provide a convening role for the region.
GCC countries and sovereign funds are active financiers
for public infrastructure projects in the region.
Bilateral financiers exist as additional sources.
Korail established International cooperation/business
department in 2013.
Korail’s cooperation track-record with Malaysia, Bangladesh,
Myanmar, Algeria, Libya, Egypt, Saudi Arabia, Oman, etc.
Expressing interests facilitate new network and capacity
building
Reaching out to Regional and Int’l Partners
32
Thank you
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