Issuance of Basic Plan and Strategic Environmental Impact Assessment Service for Baengnyeong Airport... Focus on Selection of Airport Operator

Incheon Airport Corporation and Incheon City Likely to Consider Participation in Baengnyeong Airport Construction and Operation
Operator May Need to Bear Around 50 Billion KRW Due to Low Economic Feasibility
Assemblyman Heo Jong-sik: "Additional Route Needed from Incheon Airport to Baengnyeong Airport Besides Gimpo Airport"

[Asia Economy Reporter Hye-sook Park] As the Ministry of Land, Infrastructure and Transport begins the basic planning process for the construction project of Baengnyeong Airport in Incheon, attention is focusing on the selection of the airport operator.

According to the 'Baengnyeong Airport Promotion Status' data submitted by the Ministry of Land, Infrastructure and Transport to Heo Jong-sik, a member of the National Assembly from the Democratic Party of Korea (Incheon Dong-gu Michuhol-gu Gap) on the 6th, the ministry plans to issue a service contract for basic plan establishment and strategic environmental impact assessment this month, starting with a site inspection.

In the airport construction project, a strategic environmental impact assessment report must be prepared and consulted with the Ministry of Environment during the basic plan establishment stage. The Ministry of Land, Infrastructure and Transport aims to complete the Baengnyeong Airport basic plan (draft), reflecting the contents of the strategic environmental impact assessment, by March to April next year.

Along with consultation with the Ministry of Environment, the biggest concern during the basic plan establishment stage is deciding the airport construction method, as well as the future airport operator and cost-sharing ratio.

According to the '5th Mid-to-Long-Term Comprehensive Airport Development Plan,' the so-called 'airside area,' including runways and air navigation safety facilities, is funded by the national treasury, while the 'landside area,' such as passenger terminals and parking lots, requires the airport operator to share the project costs.

Currently, except for Incheon Airport, domestic airports are operated by Korea Airports Corporation. However, the Ministry of Land, Infrastructure and Transport has not confirmed Korea Airports Corporation's participation in the construction and operation of Baengnyeong Airport and plans to review various options for expanding operators during the basic plan establishment process.

Scenery of the planned site for Baengnyeong Airport construction [Photo provided by Incheon City]

Accordingly, it is expected that Incheon International Airport Corporation will participate in both the construction project and operation of Baengnyeong Airport, while Incheon City will also engage in airport operation in the form of equity participation, with discussions on this matter intensifying.

However, legal amendments are necessary for Incheon International Airport Corporation to participate in the project.

For local governments, the '3rd Basic Aviation Policy Plan' (2020?2024) specifies that 'participation of local governments in investment and operation of overall airport infrastructure such as terminals and runways will be considered,' providing a basis for Incheon City to participate in the construction and operation of Baengnyeong Airport.

The cost-sharing ratio between the state and the operator could also become a contentious issue. Considering that the cost-sharing ratio for the Ulleung Airport construction project is 76.98% national treasury and 23.02% Korea Airports Corporation, the Baengnyeong Airport operator is expected to bear around 50 billion KRW, approximately 25% of the total project cost of 201.9 billion KRW.

Due to the preliminary feasibility study result in December last year, which showed Baengnyeong Airport's economic feasibility (B/C 0.91, AHP 0.605) to be lower compared to small airport construction projects promoted in other island regions, it is uncertain whether Incheon International Airport Corporation will participate, according to Heo's office.

Heo said, "Various policies to revitalize Baengnyeong Airport should be prepared during the basic plan establishment stage, including selecting an operator considering operational know-how and financial capacity, and adding an Incheon Airport?Baengnyeong Airport route in addition to the currently planned Gimpo Airport?Baengnyeong Airport route."

Baengnyeong Airport will be constructed as a small airport with a 1.2 km long and 30 m wide runway, passenger terminal, apron, and control tower on a 254,000㎡ site in Solgae District, Baengnyeong-myeon, Ongjin-gun, Incheon, with an investment of 174 billion KRW. Construction is scheduled to start in 2025 and be completed by 2027.

Currently, it takes 4 hours one way by passenger ferry from Baengnyeongdo to Incheon Port, but once the airport is built, it will take only 1 hour by a 50-seat aircraft from Baengnyeongdo to Gimpo Airport.

Heo Jong-sik, Democratic Party of Korea lawmaker