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South Korea’s Big Leap: High-Speed Rail Ambitions in the Czech Republic

South Korea’s Big Leap: High-Speed Rail Ambitions in the Czech Republic
photo: Czech Ministry of Transport / Public domain/Cooperation with South Korea will help improve the Czech railway
02 / 12 / 2024

The Czech railway system is on the brink of a significant transformation. The construction of high-speed railways is attracting not only domestic companies but also major international players, including seasoned South Korean firms Dohwa Engineering and Korea National Railway (KNR).

The ambitious Czech high-speed rail (HSR) project has captured the attention of global rail giants. A recent tender for the section between Světlá nad Sázavou and Velká Bíteš sparked heightened interest from foreign companies in the Czech market. Among them is the prominent South Korean company Dohwa Engineering. South Korean firms are determined not to remain on the sidelines, as evidenced by their September delegation led by the president of KNR.

During an official visit, the KNR president met with Czech Transport Minister Martin Kupka to discuss potential collaboration on Czech railway projects. This visit proves South Korea’s growing interest in Czech infrastructure, particularly the HSR initiative. The meeting coincided with the Czech-Korean Railway Conference, held in the iconic Fantova Building at Prague's main train station. The conference focused on the potential of Korean technology and expertise for the Czech railway network. With its robust portfolio and cutting-edge technologies, KNR emerges as a strong partner capable of significantly enhancing Czech railway construction quality.

Korea National Railway and Dohwa Engineering: South Korean Companies Enter the Czech Market

KNR is a state-owned enterprise and a cornerstone of South Korea's rail infrastructure. Founded in 2004, KNR specializes in constructing, managing, and modernizing rail networks, including high-speed lines. With extensive experience implementing advanced technologies, KNR focuses on efficiency and innovation, solidifying its position in both domestic and international markets. The company now has its sights set on Czech HSR projects, where its expertise could help implement advanced infrastructure.

Another South Korean powerhouse entering the Czech market is Dohwa Engineering, one of the largest engineering firms in South Korea. Established in 1957, Dohwa offers comprehensive services in planning, design, supervision, and project management across various sectors, including transport, water management, energy, and the environment. Dohwa’s global portfolio includes significant projects, such as designing the high-speed rail line between Katowice and Ostrava—a critical section of the Trans-European Transport Network (TEN-T).

Major International Players Eye Czech HSR

South Korean companies like Dohwa Engineering and KNR are not the only foreign contenders for Czech HSR projects. Recent tenders have shown that the Czech market also attracts other major names with extensive experience in building high-speed rail networks across Europe.

One such player is Poland’s Budimex, a prominent construction firm that has secured numerous railway modernization contracts in Poland and other European countries. Known for its focus on efficiency and advanced construction technologies, Budimex has the potential to bring significant innovations to the Czech market.

From Western Europe, Spain’s Acciona is another major competitor. Acciona boasts extensive experience in high-speed rail construction in Spain and beyond. The company offers proven technologies and expertise demonstrated through large-scale projects across Europe.

Now, South Korea’s Dohwa Engineering and KNR are bringing their rail infrastructure expertise and advanced Asian technologies to elevate the Czech railway to a world-class level.

Ministry of Transport Welcomes Foreign Competition: A Boost for the Czech Market

The Czech Ministry of Transport has long advocated for opening the domestic market to foreign players. Increased competition is expected to reduce the costs of constructing and modernizing railway infrastructure significantly. Currently, the Czech market is largely dominated by a small group of firms with a monopoly on major transport projects. The entry of strong foreign competitors like Budimex, Acciona, and Dohwa Engineering could disrupt this status quo, fostering greater transparency and efficiency in tender processes.

The Ministry believes that new entrants will bring technological innovations, lower construction costs, improve quality, and accelerate project timelines. Involving foreign firms in HSR construction could not only enhance the competitiveness of Czech railways in the European market but also alleviate the financial burden on public budgets.

The future of Czech railways is beginning to take shape, with foreign companies poised to play an integral role in this new chapter.

Source: md.gov.cz; RAILTARGET

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