International Railway Journal - July 2008 - (Page 23) Korea Korea’s railways face a bright future Korail, Korea’s national train operator, has achieved a remarkable turnaround in its financial performance, while Korea Rail Network Authority is pushing ahead with a huge investment programme to expand the rail network, as David Briginshaw reports from Seoul. A KTX train pulls out of Seoul’s Yongsan station where the sale of land around the station has helped to improve Korail’s finances. L AST year Korail became a profitable organisation for the first time since the separation of train operation from infrastructure in 2004. Korail has transformed a deficit of Won 526 billion ($US 514 million) in 2006 into a profit of Won 133.3 billion, and this was achieved five years ahead of schedule. There are three main reasons for this considerable achievement. Revenue increased by Won 140 billion, thanks mainly to the continuing success of KTX, Korea’s high-speed rail service linking Seoul with Busan and Mokpo. Korail managed to achieve what Mr Choi Han-Joo, Korail’s senior executive director, describes as “a real reduction in costs.” Staff costs, for example, were reduced by between Won 150 billion and 160 billion. The most important contributors to Korail’s financial turnaround were the proceeds from the development of stations and the sale of land around Yongsan station in Seoul. But, as Choi points out, the improvement in Korail’s performance was all the more remarkable because the amount it had to pay in infrastructure charges went up considerably last year, from Won 510 billion in 2006 to Won 660 billion. Choi is confident that the 2007 result was not just a flash in the pan. “In 2006, the government and Korail set out a plan to improve the performance of the railway,” he says. On the cost reduction side, Korail will reduce the workforce from 30,000 today to 25,000 by 2011. It also plans to close unprofitable passenger stations and freight IRJ July 2008 23
Table of Contents Feed for the Digital Edition of International Railway Journal - July 2008 International Railway Journal - July 2008 Contents This Month News Transit News Market News/Technology News News Analysis Conference Report Korean Railways Face a Bright Future Korean Exports Surge Ahead Ready to Roll in China Velaro Shows Eastern Promise Are You Sitting Comfortably? Compin Meets New Challenges The Fabric of Society Grinding Out a Result Rendezvous Full Contact List The Last Word International Railway Journal - July 2008 International Railway Journal - July 2008 - International Railway Journal - July 2008 (Page Cover1) International Railway Journal - July 2008 - International Railway Journal - July 2008 (Page Cover2) International Railway Journal - July 2008 - Contents (Page 1) International Railway Journal - July 2008 - This Month (Page 2) International Railway Journal - July 2008 - This Month (Page 3) International Railway Journal - July 2008 - News (Page 4) International Railway Journal - July 2008 - News (Page 5) International Railway Journal - July 2008 - News (Page 6) International Railway Journal - July 2008 - News (Page 7) International Railway Journal - July 2008 - News (Page 8) International Railway Journal - July 2008 - News (Page 9) International Railway Journal - July 2008 - News (Page 10) International Railway Journal - July 2008 - News (Page 11) International Railway Journal - July 2008 - Transit News (Page 12) International Railway Journal - July 2008 - Transit News (Page 13) International Railway Journal - July 2008 - Transit News (Page 14) International Railway Journal - July 2008 - Transit News (Page 15) International Railway Journal - July 2008 - Market News/Technology News (Page 16) International Railway Journal - July 2008 - Market News/Technology News (Page 17) International Railway Journal - July 2008 - News Analysis (Page 18) International Railway Journal - July 2008 - News Analysis (Page 19) International Railway Journal - July 2008 - Conference Report (Page 20) International Railway Journal - July 2008 - Conference Report (Page 21) International Railway Journal - July 2008 - Conference Report (Page 22) International Railway Journal - July 2008 - Korean Railways Face a Bright Future (Page 23) International Railway Journal - July 2008 - Korean Railways Face a Bright Future (Page 24) International Railway Journal - July 2008 - Korean Railways Face a Bright Future (Page 25) International Railway Journal - July 2008 - Korean Railways Face a Bright Future (Page 26) International Railway Journal - July 2008 - Korean Railways Face a Bright Future (Page 27) International Railway Journal - July 2008 - Korean Railways Face a Bright Future (Page 28) International Railway Journal - July 2008 - Korean Exports Surge Ahead (Page 29) International Railway Journal - July 2008 - Korean Exports Surge Ahead (Page 30) International Railway Journal - July 2008 - Korean Exports Surge Ahead (Page 31) International Railway Journal - July 2008 - Korean Exports Surge Ahead (Page 32) International Railway Journal - July 2008 - Ready to Roll in China (Page 33) International Railway Journal - July 2008 - Ready to Roll in China (Page 34) International Railway Journal - July 2008 - Ready to Roll in China (Page 35) International Railway Journal - July 2008 - Ready to Roll in China (Page 36) International Railway Journal - July 2008 - Ready to Roll in China (Page 37) International Railway Journal - July 2008 - Velaro Shows Eastern Promise (Page 38) International Railway Journal - July 2008 - Velaro Shows Eastern Promise (Page 39) International Railway Journal - July 2008 - Velaro Shows Eastern Promise (Page 40) International Railway Journal - July 2008 - Velaro Shows Eastern Promise (Page 41) International Railway Journal - July 2008 - Velaro Shows Eastern Promise (Page 42) International Railway Journal - July 2008 - Velaro Shows Eastern Promise (Page 43) International Railway Journal - July 2008 - Velaro Shows Eastern Promise (Page 44) International Railway Journal - July 2008 - Are You Sitting Comfortably? (Page 45) International Railway Journal - July 2008 - Are You Sitting Comfortably? (Page 46) International Railway Journal - July 2008 - Are You Sitting Comfortably? (Page 47) International Railway Journal - July 2008 - Compin Meets New Challenges (Page 48) International Railway Journal - July 2008 - Compin Meets New Challenges (Page 49) International Railway Journal - July 2008 - The Fabric of Society (Page 50) International Railway Journal - July 2008 - The Fabric of Society (Page 51) International Railway Journal - July 2008 - The Fabric of Society (Page 52) International Railway Journal - July 2008 - Grinding Out a Result (Page 53) International Railway Journal - July 2008 - Grinding Out a Result (Page 54) International Railway Journal - July 2008 - Grinding Out a Result (Page 55) International Railway Journal - July 2008 - Grinding Out a Result (Page 56) International Railway Journal - July 2008 - Grinding Out a Result (Page 57) International Railway Journal - July 2008 - Rendezvous (Page 58) International Railway Journal - July 2008 - Full Contact List (Page 59) International Railway Journal - July 2008 - The Last Word (Page 60) International Railway Journal - July 2008 - The Last Word (Page Cover3) International Railway Journal - July 2008 - The Last Word (Page Cover4)
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