Chungnam, 'Daesan~Dangjin Expressway' Construction on Track

Location map of Daesan~Dangjin Expressway construction project. Provided by Chungnam Province

[Asia Economy (Hongseong) Reporter Jeong Il-woong] The Daesan~Dangjin Expressway construction project has entered the main track.

According to Chungnam Province on the 29th, the project passed the final review of the Ministry of Strategy and Finance's Fiscal Project Evaluation Committee's feasibility re-investigation the day before, making full-scale promotion possible. The project, which had been halted due to budget overruns, has now gotten back on track through feasibility re-verification.

The Daesan~Dangjin Expressway is a 4-lane (25.36 km) connecting project linking Daesan Petrochemical Complex in Hwagok-ri, Daesan-eup, Seosan City, and the Dangjin Junction (JCT) of the Seohaean Expressway in Sagisodong, Dangjin City.

This expressway failed the preliminary feasibility studies (PFS) conducted in 2005 and 2009 but finally passed the PFS in 2016 after many twists and turns, allowing the project to be actively promoted.

However, during the basic and detailed design stages, the total project cost increased by 36%, from 670.6 billion KRW to 912.2 billion KRW, leading to the start of a feasibility re-verification process in March.

The budget increase reflected the construction of the Daesan Interchange (16 billion KRW), installation of a tunnel to prevent village disconnection in Unsan-ri, Daesan-eup, Seosan City (49 billion KRW), and soft ground treatment (40.2 billion KRW), among others.

In the feasibility re-investigation, the Daesan~Dangjin Expressway's economic feasibility (B/C) was 0.95, which did not meet the standard (1.0 or higher), but it passed the threshold by receiving 0.5 or higher in the policy evaluation (AHP). The finalized total project cost was 907.3 billion KRW, a 35% increase from the original budget.

The province plans to start compensation procedures next year along with construction and open the Daesan~Dangjin Expressway by 2030.

Once completed, the expressway is expected to efficiently handle the increasing cargo volume at Daesan Port.

It is also anticipated to reduce logistics costs for companies in the Daesan complex, decrease traffic accidents, and accelerate the development of new industrial complexes.

The Daesan complex currently operates one national industrial complex, six general industrial complexes, and four individual factories, with four general industrial complexes undergoing licensing and other procedures.

Hong Soon-kwang, Director of the Construction and Transportation Bureau of the province, said, “While the Daesan Petrochemical Complex contributes significantly to national development with annual national tax payments reaching 5 trillion KRW, infrastructure support is severely lacking. With the feasibility re-investigation passed, we can resume the project and will expedite construction to alleviate inconveniences for local residents and businesses as soon as possible.”