- Interview with Moon Chan-jong, CEO of Estrafic
- Supply contracts continue in the US, Europe, and other regions
[Asia Economy Reporter Kum Boryeong] "This marks the beginning of the reverse export of transportation systems that were previously dependent on imports."
Transportation solution specialist company Estrafic signed a contract at the end of last year to supply Automated Fare Collection (AFC) equipment for Washington D.C., USA. They won the contract competing against the largest U.S. transportation solution company, Cubic. Moon Chanjong, CEO of Estrafic, stated in an interview with Asia Economy on the 6th, "This is the largest system export achievement targeting U.S. government agencies in Korea."
This achievement was based on success achieved domestically. Estrafic entered the project to build the transportation card system for Seoul Subway Lines 1 to 8 and was selected as the second-phase operator in 2017. They installed about 9,000 terminals across 277 stations within a year without errors, gaining recognition for their technical skills. Estrafic’s subsidiary will manage system operations until 2027. CEO Moon explained, "Seoul is a large city with heavy traffic, and after successfully completing the project here, word spread, and Washington D.C. requested us to do the same."
Estrafic is also expanding overseas in the safety management system sector. They signed pilot project contracts for Variable Platform Screen Doors (VPSD) with France’s National Railway Company (SNCF) and Barcelona Metropolitan Transport (TMB) in Spain, and installations are currently underway. In France, Vanves Malakoff station in the Paris suburbs was selected, and in Spain, Can Cuias station in Barcelona was chosen as the pilot sites. CEO Moon said, "We had developed the equipment but had not commercialized it. When we showcased it at a railway exhibition in Germany, two places offered to pilot install and operate it first. Unlike Korea, Europe targets the fact that various types of trains stop at a single platform, which proved effective."
Last year, sales reached 79.7 billion KRW, a 95.9% increase from the previous year. Sales expanded significantly due to orders for domestic and international Intelligent Transportation Systems (ITS), Hi-Pass system remodeling, and overseas AFC projects. Operating losses decreased from 8.8 billion KRW in 2018 to 2.5 billion KRW last year. CEO Moon said, "Although operating profits showed a deficit as we started multiple overseas projects, the main purpose was investment to enter the global market. The Washington D.C. project is the result of that effort. In the history of domestic transportation systems, it is a dramatic turnaround where technology imported from abroad was further developed and exported to other countries."
Estrafic plans to continue accelerating its global market expansion. This is to secure future transportation markets in regions including the Americas, Europe, Southeast Asia, Middle East Asia, and South America. He added, "Currently, cities like Los Angeles and New York in the U.S. are watching the Washington D.C. project, and we hope not to stop there but to connect business with them as well."
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