Korean Bridge Succeeds With International Management

Developer breaks tradition to tap global market for savings

Having studied and lived in the U.S., Soo-Hong Kim had an international perspective that led him to eschew South Korea’s traditional approach to major project procurement.

Amec Korea Bridge connecting Incheon City toYeongjong Island should speed development.

Kim not only conceived the 12.3-kilometer bridge project between Incheon City and Yeongjong Island, but he introduced foreign financing and project management to his country’s infrastructure sector to implement the $1.7-billion crossing. In South Korea, “People think that construction companies are taking too much profit,” says Kim, explaining his decision to seek funding and construction skills overseas.

In 2005, Kim secured a government concession to develop it on a build-operate-transfer basis. For better transparency and efficiency, he defied local practice by excluding Korean contractors from the concessionaire. Instead, he got them to submit turnkey bids to the concessionaire, resulting in a 20% saving in costs.

In his approach, Kim “was pretty visionary,” says Brian Bentz, who headed special projects at Agra Inc., Toronto, when he met Kim some eight years ago.

Multimedia  View Award of Excellence Luncheon and Acceptance Speech of Soo-Hong Kim   April 3, 2008

Agra had adopted Kim’s bridge plan when U.K.-based Amec plc acquired the company and project in 2000. Kim disabused the British of ambitions to build the bridge themselves, promoting their role as investors and project managers instead, says David Waters, Amec Korea’s executive vice president.

The bridge is on course for scheduled completion in 2009. Kim also advises his government on various issues when he’s not cheering on his daughter Hyo-Jung, a U.S. Olympic team speed skater.