Recently, policies to expand eco-friendly rail transportation have been promoted worldwide to overcome climate change and achieve carbon neutrality goals. South Korea is also promoting policies centered on eco-friendly rail transportation to realize i...
Recently, policies to expand eco-friendly rail transportation have been promoted worldwide to overcome climate change and achieve carbon neutrality goals. South Korea is also promoting policies centered on eco-friendly rail transportation to realize its 2050 carbon neutrality policy. However, due to limitations in transportation infrastructure (SOC) budgets, there are constraints on funding the massive construction and operational costs of railway infrastructure solely through national finances. To address this, it is necessary to pursue effective private-public partnership (PPP) railway projects that leverage private capital. Meanwhile, future population issues directly linked to demand, such as population decline, aging, and regional depopulation caused by the country's lowest birth rate, are expected to act as obstacles to the implementation of railway projects. In particular, the potential for reduced profitability due to decreased railway demand in local areas caused by the issue of local area extinction is growing. Railway transportation requires high operating costs regardless of demand, unlike other transportation modes such as roads, which means that a future decline in demand could lead to a sharp increase in government fiscal burdens.
This study examined issues related to demand reduction and profitability decline caused by future population decline and regional depopulation. Additionally, to address the potential expansion of fiscal burdens due to changes in domestic and international conditions such as carbon neutrality, this study proposed improvement measures in the areas of project feasibility, implementation methods, and institutional frameworks to preemptively diagnose and minimize risks associated with PPP railway projects and ensure their sustainability.
To activate PPP railway projects in the future, this study proposed measures to enhance the flexibility of project implementation methods, improve business feasibility, strengthen the roles of central and local governments, and improve legal and institutional frameworks.
egarding the flexible application of private railway promotion methods, we proposed the introduction of improvement&operation methods, such as allowing the private sector to propose projects for the improvement of aging railway facilities and the reuse of abandoned lines.
Improvements to project viability include establishing criteria for track allocation and usage fees, promoting ancillary projects, establishing fare and settlement systems for private railways, and improving the free ride system.
Among measures to strengthen the roles of the central and local governments, the report proposed expanding construction subsidies for PPP railway projects in non-metropolitan areas to ensure timely supply of railway services in non-metropolitan areas. Additionally, measures to strengthen the roles of local governments include supporting the expansion of passenger demand through the development of Intermodal transportation system linking railway stations upon the opening of PPP railways and providing financial support for operational costs.
In terms of legal and institutional improvements, the report suggested adjusting construction subsidies based on socio-economic conditions and fiscal self-reliance. Additionally, to activate ancillary projects, the report proposed special provisions for sharing excess profits and revising the basic plan for private investment to allow local governments to participate.