Ulsan Mayor Kim Sang-wook is deploying a "two-track" strategy over the Ulsan Urban Rail Line 1 tram project, which is valued at 384.1 billion won. Although he declared the project would resume in July, he said he would also seek a lawful way to halt it before full-scale construction early next year.
In a recent written interview with ChosunBiz, Kim said, "The tram is a major project that will permanently change Ulsan's future transportation environment," adding, "We must decide whether to proceed by collecting public opinion in some fashion."
◇ Tram pursued as a solution to traffic woes… fiscal and operating deficits are a burden
Ulsan is the only metropolitan city in Korea without urban rail. Its public transit share is also the lowest among metropolitan cities. Even ridership on city buses, the only public transport mode, is low, and traffic congestion in the city center is severe.
The tram was pursued as a way to solve Ulsan's public transit problems. Ulsan plans to build Lines 1 to 4 over the long term. Of these, Line 1 alone is expected to require about 384.1 billion won.
However, the project requires massive funding, construction could cause traffic congestion, and there is a possibility of operating deficits after opening. That is why opinions are split over the tram project.
For these reasons, Kim had taken a negative stance on the tram project. Then in July, he declared the project would resume. At the same time, he directed staff to look for ways to stop it.
Explaining why he is seeking ways to halt the project even as it resumes, Kim said a decision on whether to proceed should not be made while citizens do not fully understand the project.
"Many citizens do not know exactly how tram construction will proceed, how lane operations will work when the tram runs, and whether the project costs and maintenance costs are appropriate," Kim said. "Citizens need a chance to make their own judgment."
◇ Contracts are already signed… "We will find lawful grounds to halt it by early next year"
That said, this is not a situation where the project can be halted immediately. Contracts for tram vehicle manufacturing and groundbreaking were already signed early this year.
Kim said, "I do not currently have the authority to stop the project." If the project is unilaterally halted, penalties could be incurred under the contract, and if construction is suspended for more than 60 days, there is a possibility of additional expense.
That is why Kim said he will revisit the laws and contract terms before full groundbreaking early next year. "We will reexamine the legal contract terms and consult with the central government to find lawful grounds to stop the project," he said.
Instead of stopping the project now, he will monitor progress while simultaneously reviewing the possibility of halting it. Kim emphasized that once the tram is built, it will change Ulsan's transportation environment for a long time, so citizens need ample time to decide.
◇ Namsin Port's 1 trillion won-class energy hub… "The state should take on the substructure"
Kim also plans to accelerate the expansion of Ulsan's Namsin Port to prepare for the era of the Northern Sea Route.
Phase one, the LNG and oil terminal, has already begun commercial operations, and phase two of the Namsin Port energy hub is underway. The second phase will add three liquid berths on a 382,000-square-meter (about 115,555-pyeong) site. The total project cost is 1.0784 trillion won, to be fully financed by private investment.
However, Ulsan City believes pursuing the project solely through private investment poses difficulties.
Kim asked the Ministry of Oceans and Fisheries to "convert the substructure into a state-funded project and pursue the superstructure with private investment."
Earlier, Ulsan converted phase two of the Bukshin Port breakwater revetment from a private-investment project to a state-funded project and is pursuing it accordingly. The city also believes that if the substructure of Namsin Port energy hub phase two is converted into a state-funded project, attracting private investment will become smoother and the project will gain momentum.
◇ "Residents raised their voices and made change"
Kim is emphasizing on-site administration that directly listens to citizens' voices, in addition to major pending issues. Since taking office, the site that stands out most to him is Naewa-ri in Doseo-myeon, Ulju-gun.
Here, industrial waste was illegally landfilled and backfilled, causing foul odors, and concerns were raised about contamination of groundwater, the source of residents' drinking water. Through the third supplementary budget, Ulsan City and Ulju-gun each allocated 5.5 billion won, totaling 11 billion won, as restoration funds needed for an administrative execution.
Regarding this site, Kim said, "It is significant in that local residents actively raised their voices and brought about change," adding, "We will continue to expand sites where citizen sovereignty is realized."