[Let's Run Again, Construction Korea] Peru Airport·Panama Metro... K-Construction's Eldest Brother Creates 'Firsts and Largest' New History

<1> Hyundai Engineering & Construction Secures Consecutive Overseas Mammoth Projects... Transforming into a 'Total Solution Creator'
'Machu Picchu Gateway' Chinchero New Airport Construction, Full Digitalization of Design, Construction, and Maintenance Processes
Also Wins Panama's Largest Infrastructure Project Ever... Secures Global Exclusive Rights for Small Modular Reactors

Domestic construction companies, which had faced difficult times due to the global economic downturn caused by the COVID-19 pandemic, are undergoing a major transformation. As international oil prices rise and the financial situation of Middle Eastern oil-producing countries improves, these companies are expanding their markets not only in the Middle East and Southeast Asia, which are considered their home turf, but also in Latin America, Africa, and Europe. In addition, they are actively developing technologies in eco-friendly sectors such as renewable energy, making vigorous advances into ‘future growth businesses.’ They are also innovating smart technologies such as unmanned aerial vehicles (drones), artificial intelligence (AI), and robotics in preparation for the post-COVID era. Asia Economy introduces various efforts by the construction industry, which has grown by gaining global recognition for its construction technology, to elevate the status of ‘K-Construction’ and take a step further.

The construction of the Chinchero New Airport terminal is a project to build a state-of-the-art airport, including an international airport terminal capable of accommodating 5.7 million passengers annually, runways, a control tower, and aprons. The construction will be carried out using a fast-track method, where design and construction proceed simultaneously over a 47-month period. The photo shows an aerial view of Chinchero Airport.

[Asia Economy Reporter Jo Gangwook] On the 19th (local time), an important event marking a milestone for Korean construction companies took place in Cusco, located in southern Peru. The groundbreaking ceremony for the new Chinchero Airport, the new gateway airport to Machu Picchu, a UNESCO World Heritage site and Inca ruins, was held, officially starting construction. This project is the first government-to-government contract in the infrastructure sector for Korea and was awarded by the Peruvian government in June 2019, with Korea winning the final bid over Spain, Canada, Turkey, and others.

Hyundai Engineering & Construction, the eldest in the construction industry, achieved a remarkable feat by consecutively winning the site preparation contract in March and the main construction contract in July this year, officially commencing construction. The total project cost is approximately 760 billion KRW, marking Hyundai Engineering & Construction’s first entry into the Peruvian market. Hyundai Engineering & Construction has already secured over 1 trillion KRW worth of civil engineering and railway projects in Singapore, Myanmar, Hong Kong, the Philippines, and Panama, continuing its overseas order success. This is another achievement in the railway construction sector following the acquisition of a large-scale metro project that pioneered the Panama market early last year.

◇ K-Construction Building the Gateway to Inca ‘Machu Picchu’ = The Chinchero New Airport terminal construction project in Peru aims to build a state-of-the-art international airport terminal, runway, control tower, and apron in Chinchero city, capable of accommodating 5.7 million passengers annually, to boost tourism demand to the world-renowned Inca cultural heritage site Machu Picchu, innovate regional logistics, and create new industries. The 47-month construction period will be carried out using a fast-track method, simultaneously progressing design and construction. The project applies the advanced design technique BIM (Building Information Modelling) to digitize the entire process from design, construction, to maintenance, enabling differentiated design, shortened construction period, reduced costs, and maximized energy-saving efficiency through 3D architectural modeling.

Locally, it is expected that once the new international airport is completed, tourism revenue in Cusco will double within five years, generating added value such as new jobs in tourism-related industries, significantly contributing to the revitalization of not only the region but also the national economy.

Panama Mega Metro Line 3 Construction.

◇ First Success in Panama Railway Project = Hyundai Engineering & Construction demonstrates global competitiveness by surpassing world-class competitors in technology and commercial aspects, leveraging its abundant experience and high technical skills in numerous large-scale domestic and international railway projects.

In particular, the Philippines is a place where large-scale infrastructure development is continuously expected under President Duterte’s ‘Build, Build, Build’ policy. The North-South Railway Section 1 project, which Hyundai Engineering & Construction won last year, is a major national land development project connecting Malolos in northern Manila and the Clark area, with a total length of approximately 53 km. Among the five sections of the railway construction crossing the Philippines, Section 1, constructed by Hyundai Engineering & Construction, involves building two above-ground stations and about 17 km of elevated bridges, with a construction period of 48 months from the start date. The Philippine government expects that upon completion, the North-South Railway will drastically reduce travel time between Manila and Clark, improving accessibility. It is also anticipated to alleviate traffic problems within the metropolitan area and reduce transportation-related costs.

Hyundai Engineering & Construction has also entered the large-scale metro project in Panama. Forming a consortium with POSCO Engineering & Construction and Hyundai Engineering, it succeeded in winning the Panama Metro Line 3 construction contract worth 2.811 billion USD (approximately 3.3 trillion KRW) on February 28 last year. The shareholding ratio is Hyundai Engineering & Construction 51%, POSCO Engineering & Construction 29%, and Hyundai Engineering 20%.

This project is a monorail construction project with a total length of 25 km connecting Panama City and the western part of the capital. The construction period is 54 months from the start date. It is the largest infrastructure construction project ever undertaken in Panama. The Panamanian government expects that upon completion, it will resolve the severe traffic congestion in the western part of Panama City. Since successfully pioneering the Brazilian construction market in the 2000s, Hyundai Engineering & Construction is laying the groundwork for entering new markets in Latin America through orders such as the Colombia Bello wastewater treatment plant.

On the 22nd (local time), a business cooperation agreement signing ceremony for the joint development and deployment of small modular reactors was held in New Jersey, USA. Holtec's CEO Chris Sing (left) and Hyundai Construction's President Yoon Young-jun are signing the business cooperation agreement (Teaming Agreement).

◇ Transformation into a ‘Total Solution Creator’ = Hyundai Engineering & Construction has set a goal to secure a leading position in future construction businesses through new business ventures. A representative example is the business cooperation agreement signed on the 22nd (local time) in New Jersey, USA, with Holtec International for the joint development and business entry of small modular reactors. Through this agreement, Hyundai Engineering & Construction secured global exclusive rights for small modular reactors by agreeing on the overall business, including ▲joint development of commercialization models ▲joint participation in marketing and bidding ▲joint business promotion. Holtec’s 160 MW-class pressurized water small modular reactor, currently undergoing detailed design and North American regulatory approval, is highly evaluated for safety and commercial viability, selected as a model for the U.S. Department of Energy’s ‘Next Generation Reactor Demonstration Program,’ and can be deployed without regional or environmental restrictions such as deserts or polar regions.

Hyundai Engineering & Construction is evaluated to have laid the foundation and cornerstone to lead future construction businesses by securing future growth engines and strengthening engineering capabilities, enabling ▲enhanced future responsiveness ▲expansion into eco-friendly, low-carbon new business areas ▲exclusive business rights in design, procurement, and construction in global markets ▲and securing participation shares in the North American market.

Yoon Young-joon, President of Hyundai Engineering & Construction, emphasized, "Through this contract, we have laid the foundation for transitioning from a past order and construction-centered business domain to an expanded EPC (Engineering, Procurement, and Construction) partner providing solutions across all construction stages, including future technology development, global sales, procurement, and construction." He added, "We will continue to devote all efforts to new business initiatives such as construction automation and smart cities, becoming a ‘total solution creator’ covering all areas from investment development to operation in construction."

This content was produced with the assistance of AI translation services.