Joint Public-Private Effort to Target Overseas Railway Projects
Collaboration Across the Entire Value Chain: Rolling Stock, Operations, and Investment
Aiming to Lead the Global Railway Infrastructure Market
Hyundai Rotem is joining forces with the Korea Overseas Infrastructure & Urban Development Corporation (KIND) to expand the global presence of K-Railway in overseas markets.
On December 17, Hyundai Rotem announced that it had signed a memorandum of understanding (MOU) with KIND on the previous day, December 16, at its headquarters in Uiwang, Gyeonggi Province. The agreement aims to jointly explore overseas railway projects and strengthen mutual exchange. The signing ceremony was attended by Lee Yong-bae, President of Hyundai Rotem, Kim Bokhwan, President of KIND, and other officials from both companies. This agreement was established to go beyond simply supplying vehicles and to jointly identify overseas railway projects encompassing infrastructure construction, operation, and investment, as well as to build a collaborative system for entering new markets.
Lee Yong-bae, President of Hyundai Rotem (right), and Kim Bokhwan, President of the Korea Infrastructure Safety & Technology Corporation (KIND), are posing for a commemorative photo at the signing ceremony of a business agreement to jointly explore overseas railway projects and strengthen mutual exchanges, held on the 16th at Hyundai Rotem headquarters in Uiwang, Gyeonggi Province. Hyundai Rotem
Recently, large-scale public-private partnership (PPP) projects that include both rolling stock and operating systems have been actively promoted in overseas railway markets. While PPP projects are attracting attention as opportunities for global market expansion, they are also considered to have high entry barriers, as they require advanced expertise not only in vehicle supply but also in infrastructure construction, project structuring, investment attraction, and risk management.
Hyundai Rotem and KIND have agreed to combine their respective areas of expertise to target the overseas railway PPP market. Hyundai Rotem will provide its technological capabilities and business experience across the entire spectrum of rail solutions, including rolling stock, maintenance, operations, and infrastructure. KIND will leverage its expertise in project structuring, investment support, and risk management to collaborate throughout the PPP business process.
Through this agreement, Hyundai Rotem expects to establish optimal business models from the early stages of overseas railway PPP projects, thereby enhancing its competitiveness. By jointly pursuing projects, both companies anticipate strengthening their negotiating power and external credibility.
A Hyundai Rotem official stated, "In an environment of intensifying global competition, this agreement will serve as an opportunity to elevate the competitiveness of Korea's railway industry. We will proactively respond to the demand for overseas railway PPP projects and, by entering overseas markets together with our partners, contribute to strengthening the domestic railway industry ecosystem."
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