[Asia Economy Reporter Noh Kyung-jo] The 'The Line' project, part of Saudi Arabia's 'Neom' project, a promising overseas construction contract, has entered its foundation construction phase.
According to foreign media on the 5th, TreviASC, a subsidiary of Trevi Group, a Saudi subsoil engineering specialist company, recently began permanent foundation construction for The Line.
The excavation depth was reported to be 70 meters. This is similar to the current construction depth of the metropolitan area express railroad (GTX) in South Korea, which is being built at a deep underground level of 50 to 70 meters.
The Neom project is part of 'Saudi Vision 2030,' announced by the Saudi government to move away from an oil-centered economic structure. It involves building a city in the northern Tabuk region with an investment of $500 billion, aiming to create a city larger than Abu Dhabi.
The Line refers to the commercial and residential district within this project. According to the blueprint, 9 million people will live in a linear residential form inside a glass-walled structure that stretches 170 km across the desert, with a width of 200 meters and a height of 500 meters. On the surface, green spaces for citizens and pedestrian paths will be created instead of roads for cars, and underground, two different levels will be constructed for high-speed rail and infrastructure.
The government and construction industry view the Neom project as an opportunity for a 'second Middle East boom.' Previously, a consortium including Hyundai Engineering & Construction and Samsung C&T won the tunnel construction contract for The Line, ordered by Neom Company. HanmiGlobal secured the special overall program management (e-PMO) service for The Line last year.
With Crown Prince Mohammed bin Salman's expected visit to Korea around late October to November, opportunities for Korean companies to participate in the Neom project are expected to increase. Although some in the overseas construction industry express concerns that the diplomatic situation between the U.S. and Saudi Arabia might have an impact, the prevailing opinion is that there will be no major problems since the governments of Korea and Saudi Arabia have maintained a friendly relationship.
The government plans to promote a 'Team Korea' strategy led by the private sector and supported by the public sector. In terms of financial support, the Korea Overseas Infrastructure & Urban Development Corporation (KIND) will raise its statutory capital limit from 500 billion won to 2 trillion won, and legal amendments will be pursued to allow infrastructure loan receivables to be sold not only to domestic financial institutions but also to overseas financial institutions.
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