Korea Railroad Corporation (hereinafter Korail) announced on the 19th that it will invite private developers to develop the site of the railroad vehicle maintenance depot in Beomcheon-dong, Busanjin-gu, Busan.
The project aims to relocate the current vehicle maintenance base near Busan New Port Station and redevelop the existing site into a complex development linked with the redevelopment of the old downtown area.
The project site covers approximately 200,000㎡ (61,000 pyeong) in Beomcheon-dong, Busanjin-gu, and is designated as a general commercial area. It is evaluated to have favorable location conditions as it is adjacent to Seomyeon downtown area, which is a hub for transportation, finance, commerce, and business.
Korail and Busan City have established land use plan guidelines through prior consultation. Participating developers in the bid must propose a residential land ratio within 30%, public land at 50% or more, and commercial and business land can be proposed freely. Public land will include public facilities such as the Busanjin-gu Health Center and Busan Family Court.
The bidding period is until May 7th of next year, and the project will proceed through a development sale method based on the private developer purchasing Korail land.
Only single corporations or consortiums with a credit rating of BBB+ or higher can participate in the bid. Up to 10 companies can participate in a consortium.
The application submission date is May 8th of next year. After receiving the applications, Korail plans to hold an evaluation committee composed of internal and external experts in related fields to select a preferred negotiator.
Detailed information such as the bidding guidelines can be found on the Korail website.
Kim Ki-tae, Head of Korail’s New Growth Business Division, said, “We will actively cooperate with local governments and others to transform the railroad vehicle depot into a new landmark of Busan,” adding, “The relocated maintenance depot will be reborn as a modernized facility equipped with advanced technology.”
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