Ulsan Urban Railway Line 1 Private Delegation.. Foundation for Establishing Ulsan Transportation Corporation

【Financial News Ulsan=Choi Su-sang Reporter】 The Ulsan Urban Railway Line 1, scheduled to open at the end of 2028, is expected to be operated by private delegation. Based on this, the establishment of the Ulsan Transportation Corporation will be pursued in the future.
According to Ulsan City on the 20th, the target for private delegation operation is the Ulsan Urban Railway Line 1 and the hydrogen tram from Taehwagang Station to Jangsaengpo Whale Special Zone. 
The delegation operation contract is in 5-year units, and the total operating cost is estimated at about 55 billion won. The city will soon hold a private delegation review committee to review related matters.
If the Ulsan City Council agrees, the bidding for the selection of a private delegation operator will proceed around October. As urban railway operation experience is essential, competitive bidding from transportation corporations of other municipalities currently operating urban railways, such as Seoul, Daejeon, Busan, Daegu, and Gwangju, is expected.  
Unlike other cities, the reason for delegating operation to the private sector without establishing a transportation corporation first is that it does not meet the criteria for establishing a transportation corporation. The most basic condition is that at least 50 vehicles must be secured, but the hydrogen tram vehicles deployed on Ulsan Urban Railway Line 1 are only 9.
Also, if Ulsan City directly manages through its urban corporation or facility corporation, the financial burden due to large-scale manpower recruitment and the establishment of new organizations is also the background of private delegation operation.
A city official said, "The private delegation operation is a transitional choice to stably establish the new transportation means of hydrogen tram, and it will also serve as a foundation for the establishment of a transportation corporation that will be responsible for Ulsan's public transportation, including city buses, in the future."
Meanwhile, Ulsan Urban Railway Line 1 will be constructed with a total length of 10.9 km from Taehwagang Station to Sinbok Intersection. There will be 15 stations installed. An eco-friendly hydrogen catenary-free tram will be deployed using the hydrogen demonstration city infrastructure. It is expected to open as early as the end of 2028. The selection of construction contractors is currently underway.
Also, the hydrogen tram (1 vehicle) connecting the 4.6 km section from Taehwagang Station to Jangsaengpo Whale Culture Special Zone will open in 2027.



ulsan@fnnews.com Choi Su-sang Reporter