Concrete Mixer Truck Supply Halted at Seoul Downtown Construction Sites... Some Projects Face 'Delays'

[Asia Economy Reporter Yoo Hyun-seok] The Ready-Mix Concrete Transport Union has been refusing to transport ready-mix concrete to some construction sites in Seoul, causing delays in construction work.

According to the construction industry on the 16th, five branches of the Ready-Mix Concrete Transport Union in the metropolitan area have been refusing to transport ready-mix concrete to downtown areas, including inside the Four Great Gates of Seoul, since the 1st of this month.

The transport union had previously agreed with the ready-mix concrete industry in July to increase transportation fees by 24.5% over two years. However, since the demolition of Sampyo Seongsu Plant in Seoul in August this year, construction sites in Seoul have been sourcing ready-mix concrete from Gyeonggi and Incheon areas, and due to traffic congestion and other reasons, the union is demanding another increase in transportation fees from construction companies.

As a result, the supply of ready-mix concrete has been halted at some sites in Seoul, causing delays in construction at several locations, including the apartment site in the Sewoon District being built by Daewoo Construction [047040].

A source from the construction industry explained, "Some companies are switching to other suppliers or reluctantly procuring ready-mix concrete by paying extra money to mixer truck drivers."

Construction companies with sites inside the Four Great Gates of Seoul are currently minimizing damage caused by the refusal to transport ready-mix concrete, but they believe that if the situation prolongs, construction delays could spread.

A representative from a major construction company said, "Transportation fees for ready-mix concrete should be resolved through negotiations between the truck owners and the ready-mix concrete industry. It is unusual that they have taken collective action against construction companies despite having already agreed on the rate increase three months ago," adding, "If the refusal to transport continues for a long time, it could cause delays in overall construction projects."

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