[Asia Economy Reporter Park Hyesook] The public offering for the 'Incheon Port Smart Auto Valley' project, which aims to develop and modernize the used car export industry in Incheon by creating an eco-friendly advanced used car export complex, is set to restart.
Incheon Port Authority (IPA) announced that the re-bidding process for the Smart Auto Valley operator will be conducted over 90 days from the 12th of this month until January 9th next year. The priority negotiation candidate will be selected in January, with plans to commence the first phase of the project in the second half of the same year.
To minimize delays and ensure stable project progress during the re-bidding, IPA plans to strengthen financial requirements such as business capability, financial ratios, and funding in the evaluation criteria for the business proposals to select a qualified operator.
Previously, IPA selected a priority negotiation candidate through a public offering in November last year. However, due to changes in the external environment caused by the global economic downturn and the Russia-Ukraine war, including rising costs of major construction materials and increased interest rates, negotiations were terminated in May due to increased investment costs.
The Incheon Port Smart Auto Valley project involves developing an eco-friendly and advanced used car export cluster in one to two phases on a 398,155㎡ (approximately 120,000 pyeong) site near the Yeokmuseon Wharf in Incheon South Port. The complex will include spaces for used car sales, auction sites, inspection centers, parts sales, and waterfront areas for citizens to enjoy.
Incheon Port is a key hub for used car exports in South Korea, exporting 409,000 units, which accounts for 88% of the national used car export volume of 466,000 units as of last year.
IPA plans to transform the current Songdo used car export complex, which operates under poor conditions around the Songdo amusement park area, into a high-tech eco-friendly system with an advanced one-stop export sales system. This modernization aims to create a cutting-edge used car export complex that coexists with surrounding cultural and tourism areas, turning it into a high value-added industry driving the Incheon regional economy.
According to IPA, the used car export industry has significant ripple effects across upstream and downstream sectors, from parts and maintenance to trade. The establishment of Smart Auto Valley is expected to generate approximately 1 trillion KRW in production inducement effects, 400 billion KRW in added value, and create 6,000 jobs.
An IPA official stated, "This project will create a new landmark in the Incheon area, replacing the outdated used car export complex. Additionally, support and convenience facilities for citizens will be established, revitalizing tourism and transforming the area into a space where local merchants and residents can come together."
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