Hyundai Rotem is strengthening its overseas K-railway strategy in cooperation with the Korea Overseas Infrastructure & Urban Development Corporation (KIND).

Hyundai Rotem announced on the 17th that it had signed a memorandum of understanding (MOU) with KIND on the 16th at its headquarters in Uiwang, Gyeonggi Province, to jointly develop overseas railway projects and enhance mutual exchanges.

Key officials, including Hyundai Rotem President Lee Yong-bae and KIND President Kim Bok-hwan, attended the signing ceremony. The agreement was concluded to jointly identify overseas railway projects and establish a cooperative framework in order to seek opportunities for entry into new markets.

In overseas markets, large-scale public-private partnership (PPP) projects for railway infrastructure construction, including rolling stock and operating systems, have recently been actively pursued. PPP projects are emerging as new opportunities to expand entry into global markets. However, it is reported that participation in such projects is difficult because expertise is required in a wide range of areas, including rolling stock supply, infrastructure construction, project structuring, and securing investment. Hyundai Rotem and KIND agreed to cooperate in targeting overseas railway PPP markets based on their respective specialized capabilities. Hyundai Rotem is expected to be responsible for know-how and technological capabilities in rail solution areas such as rolling stock, maintenance, operations, and infrastructure, while KIND will handle project structuring, risk management, and investment support.

In addition, under this agreement, Hyundai Rotem and KIND decided to expand cooperation in various fields, including mutual exchange of information related to overseas railway projects, joint identification of promising overseas railway projects, provision of joint investment and investment opportunities among overseas project agreement parties, and development of key joint projects.

Hyundai Rotem expects that, through cooperation with KIND, it will be able to establish optimal business models from the early stages of overseas railway PPP projects and enhance its overall market competitiveness. The company also expects positive effects on strengthening negotiating power and credibility during the project development process.

A Hyundai Rotem official said, “Amid increasingly fierce global market conditions, this agreement will serve as a new catalyst for strengthening K-railway competitiveness,” adding, “By working with KIND, we will proactively acquire the capabilities needed to respond to demand in overseas PPP railway projects and take the lead in reinforcing the domestic railway industry ecosystem through joint overseas market entry with partner companies.”

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