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Private and Public Sectors and Government Team Up to Launch the ‘Overseas Airport Development Committee
- Industry and financial institutes gather on the 27th... Strengthening support for Korean companies to enter foreign market
□ MOLIT (Minister Kim Hyun-mee) launched the ‘Overseas Airport Development Committee’ joined by the construction industry, financial institutes, airport operators, and MOLIT at the main conference room of the Korea Airports Corporation located in Gimpo on Feb 27 (Wed) for the goal of strategically pioneering overseas airport markets.
ㅇ This event* was held successfully with about 40 people including the airport navigation policy officer and from construction companies interested in entering foreign markets related to airports, supporting institutes such as construction companies, Incheon Airport Corporation, Korea Airports Corporation, International Contractors Association of Korea, Korea Transport Institute, KIND, KOTRA, etc., as well as financial institutes such as the Export-Import Bank of Korea.
□ The ‘Overseas Airport Development Committee’ was established in the form of being led by the private sector and supported by the government for the goal of support activities and searching for strategies to share information and win foreign bids related to the development of overseas airports.
ㅇ The MOLIT airport navigation policy officer (ex-officio member) and 000* will serve as the joint chair of the association and it will hold one or more general meetings every half-year to discuss measures on supporting bidding procedures.
ㅇ In particular, those in attendance at the launching ceremony demonstrated their resolution to enter foreign markets through the cooperation of the private sector, public institutes and the government under the slogan, “Together, To the World, To the Future”.
□ Meanwhile, the global aviation demand is expected to grow by 4.3% annually for passengers and by 3.9% annually for cargo until ‘35. The value of orders related to the development of overseas airports is estimated to be approximately 121.5 billion USD, and thus, the overseas airport development market is expected to continue to grow.
ㅇ In particular, with projects growing in scale, the bidding methods are shifting from simple subcontracting to investment development-types where the developers participate in all processes including design, finance, construction and operation.
ㅇ Furthermore, the overseas bidding market is transforming into a match among nations where among competing countries, public institutes and the government having experience in investment development and capital are actively supporting the private sector to win bids for overseas projects.
□ However, Korean companies have little development experience in finding and planning airport projects, and they are specialized in airport operation, while also facing limitations due to the low-cost bids from China, etc. in winning simple subcontracting project bids, which Korea showed strength in the past.
ㅇ Accordingly, it is necessary to enhance Korea’s abilities to win bids in order to compete against advanced nations that are equipped with technologies, capital and experience.
□ In order to mutually supplement such weaknesses of Korean companies and to appropriately respond to changes of overseas markets, MOLIT launched the ‘Overseas Airport Development Committee’ together with various related institutes such as financial institutes, airport operators, and support institutes, etc.
□ A spokesperson for MOLIT said, “The overseas airport market is continuously growing mainly in countries in Asia and the Pacific, and therefore, it is a market that we must strategically enter.”
ㅇ He added, “The government is planning to provide full support for this committee and it is expected that Korean companies will strengthen their bidding competency, thereby improving their bidding performance.”
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