Total Construction Cost of 575.4 Billion KRW, Largest Project Since the Opening of Busan Port New Port
[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) announced on the 23rd that it has been selected as the qualified bidder for the detailed design of the "Busan New Port North Container Phase 2 Port Hinterland Development Project" commissioned by the Busan Port Authority (BPA). The construction cost of this project is approximately 575.4 billion KRW, making it the largest single construction project ordered since the opening of Busan New Port in 2006. DL E&C holds a 42% stake (about 241.7 billion KRW) in the project.
This project involves cutting the Yokmang Mountain near Busan New Port and utilizing the excavated soil and rock for reclamation at Busan New Port and Jinhae New Port, while developing the site to be used as a port hinterland complex. The height of Yokmang Mountain to be removed is 150 meters, and the volume of soil and rock produced is 28.62 million cubic meters. The future port hinterland site will cover 522,000 square meters, equivalent to the size of 75 soccer fields. Construction is scheduled to begin next year and will take 12 years to complete, making it a large-scale project.
Notably, this project was conducted using a fixed-price best design method, where evaluation and review were based solely on design without price competition, drawing attention due to fierce technical competition among construction companies. DL E&C succeeded in winning the bid by demonstrating its accumulated construction experience and differentiated technology in the port and coastal sectors. DL E&C has previously successfully completed major projects within Busan New Port, including the Busan New Port soil removal work and the Busan New Port West Container Terminal phases 2-5 construction.
DL E&C predicted the maximum annual demand for rock (9.14 million cubic meters/year) through simulations considering the order variability of Busan New Port and Jinhae New Port. In line with the predicted demand, it proposed an underground unmanned automated production plant and system capable of producing up to 10.4 million cubic meters of rock annually. This plan aims to minimize safety accidents and environmental damage while ensuring a steady supply of rock.
On the site where Yokmang Mountain is removed, a large-scale park of 85,000 square meters will be created to secure green space. Additionally, the underground space used as a rock factory will be constructed to attract high value-added facilities such as data centers, shopping centers, and smart farms after the completion of construction. By creating a three-dimensional port hinterland complex, it is expected to provide a resting space for local residents and contribute to the overall value increase of the hinterland complex.
A DL E&C official stated, "We succeeded in winning the bid through evaluation and review based solely on design and construction technology, which recognized DL E&C's differentiated technological capabilities," and added, "We plan to actively consider participating in the upcoming Jinhae New Port projects."
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