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High Speed Railway Impacts on Regional Economy - Lessons Learned in Korea

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High Speed Railway Impacts on Regional Economy - Lessons Learned in Korea High Speed Railway Impacts on Regional Economy - Lessons Learned in Korea July 28, 2020 SeungKook WU Korea Transport Institute Territorial Development and Regional Mobility Systems Seminar OECD0 -ITF Contents High Speed Railway Network in Korea Changes in Transport Economic Impacts Lessons Learned 2/25 High Speed Railway Network in Korea 3/25 1. High Speed Railway Network in Korea Kangneung Seoul Station Suseo Yangpyoung Yongsan Pyoungchang Manjong Seoul- Seoul- Feasibility Plan approval Seoul- Busan1 Busan2 Gwangju1 Chonan-Asan O-song Gonju Daejon Gimchon-Goomi Pohang Iksan DongDaegu Conventional Speed Railway Jeonju ShinKyeongju KyeongBu 1(2004) Jungeup KyeongBu 2(2010) Ulsan KyeongJeon(2010, 2012) Cheolla(2011) Cangwon Jinju Honam 1(2014) Gwangju-Songjung Busan Donghae(2015) Naju Soonchon Suseo(2016) Honam 2(Plan) Mokpo Kangneung(2017) Yeosoo-expo 4/25 Changes in Transport 5/25 1. Travel Time ■ Time savings 6/25 2. HSR Covered Area ■ Coverage 7/25 3. Ridership ■ Ridership 2017→216,781/day, 2018 → 232,416/day 8/25 4. Transport Mode Share ■ Modal shifts KyeongBu Line (Seoul – Busan) 9/25 4. Transport Mode Share ■ Modal shifts Honam Line (Yongsan – Gwangju) 10/25 5. Station Area Development ■ Multi-modal Transport Complex ● Integrating all transport modes (HSR, local city metro, bus, taxi, etc.) at a multi-modal transport complex ● Local and inter-city traffic increases give new business opportunities - Meetings, tourism, conventions, expositions, shopping, etc. Completed Planned In study • O-song • DongDaegu Station • Ulsan Station • Mokpo (2016) • Kwangju-Songjung • Sooseo Station • Dongtan • Iksan Station • Jije • … 11/25 5. Station Area Development DongDaegu Multi-modal Transport Complex - Selected as a National Pilot Project(2010) Setting - Integration of KTX, Intercity bus, local bus, metro - Transport infra + shopping, entertainment, education, etc. Project time - 2010~2016 Cost - 1 Billion USD Developer - Shinsegae (2nd largest in shopping) - Space : Land 36,000㎡, Floor 275,000㎡ Physical size - Building : underground 7floors, ground and over 9floors - Facility types : HSR and Bus Terminal, Culture-Education, Theme Park, Department Store, etc. Ridership KTX: 17,684,000/yr → 20,785,000/yr (16%↑) Ridership Metro: 8.7 Station million/yr → 12.4 million/yr Parking (40% ↑) Stores, etc. # Visitor store: 33 million/yr Revenue store: 660 billion KRW/yr 12/25 5. Station Area Development 서울경제(2017. 11.22) 영남일보(2017. 12.11) [건축과 도시-신세계동대구복합환승센터]흩어진 대중교통역 하나로...낙후된 구도심에 활기 불어넣다 HSR Metro 13/25 Economic Impacts 14/25 1. Impact on Locality and City ■ HSR Development Model Cities’ International Status International City National & international events hosting Tourism Business Visiting City Image Improvement (KTX City) Local Inflow of firms, population Competitiveness Industrial development Station as City Activity Center High Speed Rail Development Better use of local Service transport Industry revenue increase Attractiveness Land-use increase Higher Accessibility Population increase development Congestion decrease Development Multi-modal condition improved Transport Complex 15/25 2. Economy Growth through Accessibility Improvement Removing distance barrier National territory map shrunk in travel time Better Accessibility 2h 40m Business Opportunities in (2h saving) Long-distanced Regions 1h 30m (2h 20m saving) Employment/revenue Increase 5시간 in HSR Covered Areas National Economy Growth 16/25 3. National HSR Ridership Increase ■ HSR ridership ● Tour and business travel increased ● In 2018, 400 person-km of HSR on average 2011 2012 2013 2014 2015 2016 2017 Passenger-km 1,338 1,389 1,427 1,471 1,539 1,638 1,942 (10millions) population KTX 50,734 50,948 51,141 51,328 51,529 51,696 51,778 (thousands) Passenger-km/ 263.7 272.6 279.0 286.6 298.7 316.9 375.1 population 구분 2004 2005 2006 2007 2008 2009 2010 Passenger-km 555 886 978 985 999 976 1,082 (10millions) population KTX 48,584 48,782 48,992 49,269 49,540 49,773 50,516 (thousands) Passenger-km/ 114.2 181.6 199.6 199.9 201.7 196.1 214.2 population 17/25 4. Change in Connected Local Metro Ridership change of Seoul Bundang Line Get on Get off Before SRT service After SRT service Revenue change of Gwangju Metro Before Honam Line After Honam Line 100 million KRW 18/25 5. Population Change ■ Choongcheong province city population Cheongju A-san (2016 population 850thousands, 24.7% increase) (2016 320 thousands, 6.2% increase) HSR-connected Boryeong Jaechon (2016 110thousands, 0.5% decrease) (2016 140 thousands, 0.4% decrease) HSR-not-connected 19/25 5. Population Change ■ Youngnam province city population Ulsan Ulju Milyang Gimchon (2016 population 230,000, (2016 110,000, 0.9% increase) (2016 140,000, 5.4% increase) 5.4% increase) HSR-connected Geoje Andong Sangju (2016 population 270 thousands, (2016 170,000, 0.1% increase) (2016 100,000, 1.4% decrease) 7.1% increase) HSR-not-connected 20/25 6. Employment Change ■ Service sector employment increase health education art, sports, leisure # employee change employee # HSR station access time(minute) 21/25 7. Real Estate Price Change ■ highest Housing apartment price change in HSR coverage Lowest 2010.11.1 KTX 2단계 개통 2004.4.1 KTX 1단계 개통 [ 대구시 동구 신암동 00아파트 ] [ 경주시 충효동 --아파트 ] 2004.4.1 2004.4.1 KTX 1단계 개통 KTX 1단계 개통 2010.11.1 KTX 2단계 개통 2010.11.1 KTX 2단계 개통 [ 천안시 쌍용동 xx아파트 ] [ 대전시 중구 대흥동 △△아파트 ] 22/25 Lessons Learned 23/25 Lessons Learned ■ HSR had positive impacts on regional economy - Revenue, employment, land price, local transport ridership increased - Passengers and visitors provided new business opportunities ■ Size of impacts were different at stations - Stations located far from city center had limited benefits ■ Coordination was crucial for HSR station area development - Multi-modal transport complex effect was significant but it needed to overcome many hurdles: coordination of stake holders, legal regulations, development plans (transport, landuse, industry, housing, etc.) 24/25 Lessons Learned ■ Creativity is needed for financing station area development project - How to share risk and profit among public and private investors - How to facilitate land acquisition process ■ Local leadership is an essential factor for success - DongDaegu multi-modal transport complex was possible thanks to local government’s strong leadership 25/25 사람·환경·교통의 조화 속에 미래의 삶을 풍요롭게 바꾸는 한국교통연구원.
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