Daewoo E&C Captures 'Land of Opportunity' Iraq... Secures Alfo New Port Site

[K-Construction, New Challenge] Alpo Breakwater as a Catalyst
Approximately 3.8 Billion USD in Orders Secured So Far
Constructing the Middle East's First Immersed Tunnel in Iraq

Daewoo E&C is taking the lead in making Iraq, the "land of opportunity," a key market in the Middle East. Although Iraq was devastated by a long war with the United States and the Islamic State (IS), the new government launched last year has embarked on a massive national reconstruction effort. In particular, as the world's fifth-largest oil producer with improved fiscal capacity due to rising international oil prices, Iraq is considered a land of opportunity not only for domestic but also for overseas construction companies.

Aerial View of Al-Faw New Port, Iraq

Daewoo E&C has been turning opportunity into reality by participating in the large-scale new port construction project, the "Al Faw Port Project," for about 10 years. Starting with the Al Faw breakwater in February 2014, it has secured a total of nine contracts worth $3.78 billion, including △ container terminal quay wall construction ($510 million) △ container terminal dredging and reclamation ($720 million) △ Al Faw-Um Qasr connecting road ($440 million) △ port main navigation channel ($310 million) △ Khor Al Zubair immersed tunnel main construction ($630 million).

The Iraqi government has the ambition to develop the large-scale new port in the Al Faw area, the only region bordering the sea, in connection with railways linking Turkey and neighboring countries, aiming to make Al Faw Port one of the world's top 12 ports.

Accordingly, follow-up construction for the Al Faw new port is expected to continue. A Daewoo E&C official said, "We expect continuous orders not only for industrial infrastructure and residential facilities but also for infrastructure projects connecting them," adding, "Currently, Daewoo E&C is the only construction company participating in the new port development project, so it is highly likely that additional construction will also be awarded to Daewoo E&C."

Al-Faw Breakwater, Iraq - Panoramic View

Technical Expertise and Know-how Overcoming Difficult Construction Conditions in Iraq Captured Client Trust

Daewoo E&C's successive wins in the Al Faw Port Project were possible because the client recognized its ability to solve material supply issues as well as the excellence of its eco-friendly construction methods and smart construction technologies.

For example, in the Al Faw breakwater project won in February 2014, Daewoo E&C demonstrated construction know-how to overcome difficult construction conditions. The Al Faw breakwater project was a KRW 870 billion project to build a 15.95 km long rubble mound breakwater and create an internal quay. The biggest obstacle at the time was smooth material supply. Approximately 15 million tons of stone were required for the Al Faw breakwater, but it was difficult to supply the necessary amount on time within Iraq. Therefore, Daewoo E&C secured a quarry in the United Arab Emirates (UAE), about 900 km away from the site, to procure the stone.

Daewoo E&C established a "stone supply interlinked development process system" that manages the entire process from production, selection, transportation, loading at the pier, to marine transport using barges for various sizes of armor stones and cover stones. As a result, stones were supplied on time, enabling the completion of the Al Faw breakwater project. Additionally, to overcome the weak clay layer foundation conditions under the breakwater and minimize environmental damage, cement mixing methods were excluded, and an eco-friendly staged embankment method was applied during construction.

In particular, Daewoo E&C optimized the breakwater cross-section design, achieving about a 30% cost reduction compared to the client's original design, which further strengthened the partnership with the client.

The latest smart construction technology was also applied to the Al Faw breakwater project. Using a machine controller composed of automatic sensors, underwater construction areas that are difficult to visually inspect were accurately identified and constructed, enhancing work precision. This minimized the need for divers, contributing to accident prevention and achieving "12 million hours without accidents." A Daewoo E&C official explained, "Given the area's history as a battleground during the Iran-Iraq War (1980?1988) and the Gulf War (1990?1991), we recognized the necessity of mine and unexploded ordnance removal. We ensured safety during construction by removing hundreds of explosives in advance using the latest detection techniques and dedicated detection vessels."

Daewoo E&C overcame geopolitical instability and difficulties in securing manpower and materials during the Al Faw breakwater construction and successfully completed the project. As a result, Daewoo E&C won the "Al Faw breakwater additional construction" contract in March 2019, and in April and August of the same year, secured contracts for "Al Faw container terminal package 1" and "Al Faw access road," respectively. Notably, all follow-up projects after the initial Al Faw breakwater contract were awarded through direct contracts. While this may seem simple, winning contracts through direct negotiation rather than competitive bidding in the international construction market is known to be impossible without a trust relationship with the client. A Daewoo E&C official said, "The client's high evaluation of Daewoo E&C's technical skills and site management capabilities demonstrated in previous projects was key."

Daewoo E&C's immersed tunnel site under construction in Iraq

Leveraging Geoje Bridge Construction Experience to Build Middle East’s First Immersed Tunnel 30m Underwater in Iraq

Daewoo E&C is also constructing the Middle East's first immersed tunnel in Iraq. An immersed tunnel is built by sinking prefabricated structures made on land and connecting them underwater. Globally, there are 131 immersed tunnels, mainly constructed by European and Japanese companies.

In Korea, Daewoo E&C holds the experience and technology of being the first in the world to construct the Geoje Bridge immersed tunnel, overcoming harsh conditions such as the shallowest water depth, the longest immersed tunnel segment, and ultra-soft ground. In 2013, Iraqi central government construction officials visiting Korea personally toured the Geoje Bridge immersed tunnel construction site, listened to explanations of the construction process, and expressed surprise and satisfaction with the technology. Subsequently, Daewoo E&C won the contract for the Khor Al Zubair immersed tunnel fabrication yard in Iraq in October 2019 and secured the main immersed tunnel construction contract through direct negotiation in December 2020.

The immersed tunnel under construction in Iraq involves sinking 126-meter-long segments fabricated on land to a maximum depth of about 30 meters underwater and connecting them. The tunnel is planned to be approximately 2.8 km long. A Daewoo E&C official explained, "Once completed, Daewoo E&C will hold the record as the first company to build an immersed tunnel in the Middle East."

The Iraqi government is also promoting cooperation at the government level with the Republic of Korea based on Daewoo E&C's proven construction capabilities and trust demonstrated at Al Faw Port. In particular, there are plans to receive operational know-how of the domestic export hub "Busan Port" through the Ministry of Oceans and Fisheries and a domestic port operation consulting team. Daewoo E&C aims to lead government-level cooperation as a spearhead of private diplomacy and accumulate foreign port operation experience to secure future business opportunities.

In the past, there was a saying in Iraq: "No terrorism occurs during the airing of the drama 'Heo Jun'." When it aired in 2012, the drama's popularity was so great that it achieved an 80% viewership rating in Iraq. Moreover, K-pop festivals have been held at Baghdad University, and reports on BTS have appeared on Iraq's flagship programs, showing that the enthusiasm for K-pop and K-drama remains strong. Daewoo E&C aspires to demonstrate the strength of Korea's representative construction company in Iraq as a pioneer of the Korean Wave in construction.

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