Expansion of New Private Railway Project Proposals... Development of Regulatory Improvement Measures

by Kim Minyoung

Published 24 Apr.2023 15:16(KST)

In the future, the scope of projects may be restricted not only for new routes but also for upgrading existing railway facilities such as local discontinued lines and aging railway infrastructure. Additionally, the government plans to actively attract private investment in railway construction and allocate the saved government funds to local railway construction.

On the 30th, a notice board for the resumption of the Airport Railroad Express train service was installed at the Seoul Station City Airport Terminal. The service was suspended in April two years ago due to a decrease in passengers caused by the spread of COVID-19, but it has resumed as social distancing measures were lifted and demand increased. The Airport Railroad Express train is an express service that runs non-stop between Seoul Station and Incheon Airport, reaching Terminal 1 and Terminal 2 stations in 43 minutes and 51 minutes, respectively. / Photo by Moon Honam munonam@

On the 24th, the Ministry of Land, Infrastructure and Transport shared regulatory improvement measures to expand railway investment and listened to industry difficulties at the 'Private Railway Industry Meeting' chaired by Deputy Minister Eom Myung-so.

First, shadow regulations related to project proposals will be improved to allow the private sector to actively propose new projects and add creativity and efficiency to railway projects.

Currently, proposals must strictly follow projects listed in the national railway network plan, but going forward, creative modifications such as extending start/end points, adding branch lines, or merging projects will be allowed to improve efficiency. In particular, projects included in metropolitan transportation plans for new towns will be permitted for proposal through the Railway Industry Committee’s resolution even if they are not in the national railway network plan, ensuring timely railway openings aligned with new town occupancy to avoid public inconvenience.

Until now, project proposals were accepted only for establishing new lines, but in the future, proposals for upgrading existing railway facilities such as local discontinued lines and aging infrastructure will be broadly permitted. To reduce uncertainty for private investors proposing large-scale railway projects, investment priorities will be determined periodically, and submitting letters of intent at the level of preliminary feasibility studies will significantly reduce the private sector’s sunk costs.

To enable more flexible route planning and proposals, if metropolitan railways are medium-sized or light rail, urban railway construction standards will be applied instead of general railway construction standards (for large vehicles).

Expansion of New Private Railway Project Proposals... Development of Regulatory Improvement Measures

To improve the chronic deficit structure, revenue streams will be diversified by encouraging proposals for ancillary and subsidiary businesses utilizing railway facilities. A model will be established to jointly develop railway stations and station areas on publicly owned land such as local government sites, reinvesting development profits into railways, which will be actively applied to future projects.

Until now, subsidiary businesses were very limited, such as commercial leasing and advertising, but going forward, the private sector will be encouraged to propose creative subsidiary business plans utilizing railway facilities, and the government will actively accept them.

Various fare systems and discount programs will be allowed to be proposed to reduce user burdens and secure additional short-distance demand. Furthermore, to prevent delays in land compensation and additional costs, pre-investment compensation systems will be actively applied in the railway sector.

To strengthen management of private railways, a dedicated professional organization will be established, and the support role of the Korea Rail Network Authority will be enhanced. Additionally, maintenance and management standards equivalent to public institutions such as Korail will be established for private railways, and operational status will be monitored annually through performance evaluations.

Deputy Minister Eom Myung-so of the Ministry of Land, Infrastructure and Transport stated, "To ensure that many citizens enjoy sufficient railway services, it is essential to complement government finances with private investment. In regions with good project viability, railways will be constructed through a combination of government funds and private investment, and the government funds saved through private investment will be used for new railway projects that restructure local spatial frameworks such as mega cities."

He added, "I hope the private sector will consider and propose many creative project plans that allow citizens to use the railway comfortably with minimal burden."