As a conclusion on the Greater Seoul Metropolitan Express Railway (GTX)-C line project, which has been at a standstill for a second year due to a dispute over construction costs, is expected in April, construction companies are preparing for actual groundbreaking.
According to the construction industry on the 19th, the Hanwha construction division, part of the Hyundai Engineering & Construction consortium, is hiring GTX-C line on-site professionals through the 31st. The hiring targets are two positions in total: one public affairs assistant (construction administration assistant) and one construction assistant. The workplace is Gwacheon, Gyeonggi Province, and the employment type is a 48-month contract. Although subject to change, work is expected to begin in early May.
A Hanwha construction division official said the company posted the job notice as part of preparations at the site office for groundbreaking on the GTX-C line. The public affairs assistant handles administrative tasks such as contracts, scheduling, and document management, while the construction assistant oversees and supervises on site whether construction is carried out according to the drawings.
The industry said that because the GTX-C line is aiming for actual groundbreaking this year, the Sigongsa participating in the consortium are proceeding with preparations. However, it pointed to the arbitration ruling on construction costs between the Hyundai Engineering & Construction consortium and the government, which is expected in April, as the key variable. If a decision to raise construction costs is issued, actual groundbreaking could begin in a short period. It is known that not only the Hanwha construction division but also other Sigongsa included in the consortium, such as Hyundai Engineering & Construction, have been gradually assigning personnel to site offices.
An industry official said, "Hiring on-site professionals now does not necessarily mean immediate groundbreaking," but added, "Regardless of how the (construction cost arbitration) result comes out, groundbreaking on the GTX-C line has to proceed, so construction companies are naturally preparing." The official added, "If we wait for the result and then hire the needed personnel, won't the construction be further delayed?"
Currently, actual groundbreaking on the privately funded section of the GTX-C line has been sluggish due to the issue of increasing construction costs. That is because the project budget was calculated based on 2020 prices, creating a large gap with current construction costs. The Hyundai Engineering & Construction consortium has demanded an increase in construction costs, saying rises in material and labor costs must be reflected, but the government has maintained that a legal basis is required.
The two sides requested a ruling from the Korean Commercial Arbitration Board in Dec. last year, and arbitration proceedings are underway. A decision by the Korean Commercial Arbitration Board has the same effect as a Supreme Court ruling, and the Ministry of Land, Infrastructure and Transport, the Ministry of Economy and Finance, and the Hyundai Engineering & Construction consortium agreed to abide by the result. The industry expects the ruling to come in April.
The GTX-C line is a 86.5-kilometer metropolitan express railway to be built and operated from Deokjeong in Yangju, Gyeonggi Province, to Suwon and Sangnoksu Station, with a total project cost of 4 trillion won. All sections are being carried out as a private investment project. The consortium includes Hyundai Engineering & Construction, the Hanwha construction division, Taeyoung E&C, Dongbu Corporation, Ssangyong E&C, and KB GTX-C Professional Investment-Type Private Equity Special Asset Investment Trust (SOC). The Hyundai Engineering & Construction consortium was designated the preferred bidder in June 2021 and signed an implementation agreement with the Ministry of Land, Infrastructure and Transport (MOLIT) in Aug. 2023. A groundbreaking ceremony was held in early 2024, but actual construction has not yet begun.