Transport minister cites Korea’s strengths in tech transfer, timely delivery, while acknowledging China’s pricing advantage
LEIPZIG, Germany — South Korea's transport minister highlighted the country’s edge over China in railroad technology in the lead-up to a major export bid with the United Arab Emirates.
“Except for price, Korea holds a competitive edge in the other two criteria — technology transfers to the UAE and completing the project on time,” Land, Infrastructure and Transport Minister Park Sang-woo told The Korea Herald on the sidelines of the International Transport Forum 2025 in Leipzig, Germany, Wednesday.
“Our strategy underscores not only quality but also sharing technology, which is our key strength. In contrast, China’s competitive edge lies in price.”
While acknowledging that price remains the most critical factor, Park emphasized Korea’s strength in technology transfer. He noted that although Korea has its own railroad technology, it has adopted European standards, as requested by Abu Dhabi, to facilitate localization. Historically, the UAE’s railroad market has been dominated by companies such as France’s Alstom and Spanish firms like Talgo.
Park pointed to Korea’s proven track record in international rail deals. Reflecting on his state trip to Prague on May 7, he said, “The Czech Prime Minister told reporters that Korea outpaced France in all three evaluation criteria.” Park had visited Prague with the industry minister in anticipation of signing an $18 billion nuclear plant deal, which was later temporarily suspended due to a preliminary injunction by a regional court at the request of France’s EDF, the unsuccessful bidder.
In February, a Korean consortium — comprising Korea National Railway, Korail, Hyundai Rotem, and Posco E&C — passed the prequalification process for the UAE high-speed rail project, officially entering the bidding competition. The $13.6 billion project aims to connect a 152-kilometer section between Abu Dhabi and Dubai, covering infrastructure such as roadbeds and train systems. Korea intends to bid for both categories, Park confirmed.
“Although the result of the bidding remains uncertain, I traveled to Abu Dhabi last month to engage with Etihad Rail, the UAE contractor. The discussions with the CEO and chairman of the board were very encouraging,” said Park.
He also noted that winning the UAE bid, which uses European-standard railway systems, could boost Korea’s credibility in other international markets, including Vietnam, which is planning a $67 billion North-South express rail project. The official bidding process for the Vietnamese project is expected to begin in July or August.
Starting with Uzbekistan in 2024, Korea has achieved notable milestones in overseas railway contracts, with cumulative orders valued at approximately 2.5 trillion won ($1.8 billion). Notably, a consortium led by Hyundai Rotem — the railway and defense systems arm of Hyundai Motor Group — and the state-run Korea Railroad Corporation landed a record-breaking high-speed train deal with Morocco in February.
Meanwhile, Minister Park also participated in a closed-door ministerial meeting at the ITF, where he shared Korea’s insights on consumer subsidy policies for electric vehicles and hydrogen-powered railway systems as part of its future mobility initiatives.
hyejin2@heraldcorp.com
