Korea Railroad Corporation (KORAIL) has secured the operation and maintenance contract for the Manila Urban Railway in the Philippines, paving the way for overseas expansion in the railway operation sector. This is the first case where a domestic corporation has exported beyond the construction of railway systems to the full-scale operation and management phase internationally.
According to the Ministry of Land, Infrastructure and Transport on the 22nd, KORAIL signed a contract for the operation and maintenance of the Manila MRT Line 7 with the business entity under the Philippine Department of Transportation. The contract amount is approximately 120 billion won, and the contract period is 10 years.
This project concerns the MRT Line 7, which connects the metropolitan area of Manila (total length 23 km, 14 stations), and KORAIL will dispatch 28 managerial personnel to oversee the operation, control, station services, vehicle maintenance, and facility management of the line, which is scheduled to open by the end of next year.
The success of this project award was crucially based on the long-term cooperation between the government and KORAIL. The Ministry of Land dispatched a support team led by Deputy Minister Baek Won-guk in recent days to conduct high-level meetings on-site, and KORAIL has been accumulating operational capabilities through the advisory project for MRT Line 7 since 2016.
The ministry regards this contract as 'the first overseas expansion achievement in the operation and maintenance (O&M) sector' and plans to expand it into an overseas business model that encompasses not only railway construction but also overall operation. In particular, this achievement is evaluated as the third key milestone in K-rail exports, following the first export of high-speed train vehicles to Uzbekistan last year and this year's contract for the supply of electric trains to Morocco. Minister Park Sang-woo emphasized during a meeting with the Philippine Minister of Transportation last month, 'South Korea possesses world-class experience in not only railway system construction but also operation and maintenance.'
The ministry plans to strengthen public-private links to export the Korean-style railway operation model to railway projects in Southeast Asia, the Middle East, and South America in the future. Deputy Minister Baek stated, 'As a result of the government, public institutions, and corporations moving as one team,' and added, 'We will continue to provide comprehensive support so that K-rail can grow into a global brand, from planning to operation.'