Leipzig: The Republic of Korea has positioned itself as a strong competitor against China in the race to secure a high-speed railway project in the United Arab Emirates (UAE), valued at an estimated US$13.6 billion, as declared by South Korea’s Transport Minister, Park Sang-woo, on Wednesday. The Korean consortium, comprising the Korea National Railway, Korea Railroad Corp., Hyundai Rotem Co., and POSCO E and C Co., has successfully passed the pre-qualification stage, allowing them to proceed to the official bidding phase for the UAE’s ambitious railway endeavor.
According to Lao News Agency, Minister Park, who is presently attending the International Transport Forum (ITF) Summit in Leipzig, Germany, emphasized that the consortium’s competitive edge lies in its emphasis on technology transfer, a factor he believes distinguishes them from their Chinese competitors, who are primarily focusing on pricing strategies. The UAE initiated two separate bids earlier this year for the project, targeting roadbed and railway vehicle construction, with plans to establish a 150-kilometer high-speed rail line connecting Abu Dhabi and Dubai by 2030.
Minister Park highlighted three critical factors for securing international construction projects: competitive pricing, localization capabilities, and the ability to complete projects within the stipulated time frame. He asserted that Seoul’s strengths lie in localization and timely completion, including the transfer of technology. The potential success of the Korean bid in the UAE project could significantly bolster the country’s presence in the global construction market, especially given Seoul’s proposal of a European high-speed railway model for the Middle East.
Vietnam, Egypt, and Peru are among the countries reportedly considering their own high-speed railway projects in the foreseeable future. In February, Hyundai Rotem, a member of the Korean consortium, secured a significant deal worth 2.2 trillion won (approximately US$1.6 billion) from Morocco to supply advanced trains. Additionally, last year, they signed a contract valued at 270 billion won with Uzbekistan to provide high-speed trains.
The minister also revealed plans for the development of hydrogen-powered trains, aligning with the global decarbonization efforts in the transport sector. Earlier this month, Seoul’s transport ministry outlined a strategy to develop and commercialize hydrogen-fueled trains by 2028, aiming to position the local industry as a global leader in this field. The global hydrogen train market is expected to expand significantly, with projections estimating growth from $2.67 billion currently to $26.4 billion by 2035.
