Hyundai Engineering and Construction Company withdraws from Gadeokdo New Airport coastal development venture
Gadeokdo New Airport Project Faces Challenges, Delay in Completion Possible
The Gadeokdo New Airport project in Busan, South Korea, is currently experiencing difficulties, both technically and politically. Here are the key developments:
- Contractor Withdrawal: Hyundai Engineering & Construction, initially selected as the contractor for the project, has withdrawn from the land reclamation and construction efforts. The decision came due to disagreements with the government over revisions to the basic design and shortening the construction timeline.[2][4][5]
- Timeline Concerns: The original seven-year project timeline is now predicted to stretch to at least nine years, and the planned opening date of 2029 is under threat.[3][5]
- Land Negotiations: In spite of these setbacks, Busan city is moving forward with negotiations for land compensation with affected residents. These talks are scheduled to commence on June 5, indicating progress on administrative issues.[1][5]
The Influence of Politics
The development of the Gadeokdo New Airport has been significantly affected by political factors:
- Political Priorities: The project seems to be driven more by political priorities than sound policy judgement. A previous feasibility study suggested that expanding Gimhae International Airport would be more viable, however, the decision to construct a new airport on Gadeokdo was pursued nonetheless.[3]
- ** technical Hurdles and Costs**: The project faces considerable engineering hurdles, such as the need for ground reinforcement due to soft marine sediment. The estimated cost has already surpassed 13 trillion won ($9 billion) and is expected to continue rising.[3]
- Contractor Shortage: The withdrawal of Hyundai Engineering & Construction and the lack of bidders in previous tenders demonstrate the difficulties in finding a suitable contractor. This situation suggests the political pressure to continue the project despite practical challenges.[3][4]
[1] Gadeokdo Airport project driven by politics, not policy - JoongAng Ilbo[2] Hyundai E&C's withdrawal from Gadeokdo airport project sparks calls for reorganization - JoongAng Ilbo[3] Challenges and opportunities for Korea's infrastructure sector - JoongAng Ilbo[4] [unnamed article] - Chosun Ilbo[5] [unnamed article] - Yonhap News Agency
- The challenges faced by the Gadeokdo New Airport project in Busan, South Korea, extend beyond technical difficulties, as political factors appear to play a significant role in its development.
- The project's apparent prioritization over sound policy judgement, combined with technical hurdles and escalating costs, suggests that politics may be driving the project more than practical considerations.
- The withdrawal of Hyundai Engineering & Construction and the difficulties in finding a suitable replacement contractor highlight the political pressure to continue the project, despite practical challenges.
- In the realm of international politics and finance, the future of the Gadeokdo New Airport project, with its many challenges and delays, could impact the oil-and-gas industry, considering the strategic location of Busan as a key transportation hub for energy resources.
