Efficient Implementation Efficient Implementation of Road Projectsof Road Projects

To Raise Eco-friendly Green TerritoryTo Raise Eco-friendly Green Territory

Efficient Implementation Efficient Implementation of Road Projectsof Road Projects

To Raise Eco-friendly Green TerritoryTo Raise Eco-friendly Green Territory

2010. 6. 23.2010. 6. 23.

This report is written by the Taskforce consisting of

public officials and relevant experts from the

Presidential Council on National Competitiveness,

Ministry of Land, transport and Maritime Affairs (MLTM),

Ministry of Strategy and Finance (MOSF), Korean

Research Institute for Human Settlements, and Korea

Transport Institute. The TF has written the report from

last Oct. to this May based on site tours around the U.S.,

Japan, the U.K., France and Germany and discussion

with experts there.

The report is designed to come up with measures to

improve inefficient investment, damage on natural

landscape, and invasion of public lives.

CONTENTSCONTENTS

Current Status & ProblemsCurrent Status & ProblemsⅠⅠ

Causes of ProblemsCauses of ProblemsⅡⅡ

Improvement MeasuresImprovement MeasuresⅢⅢ

Expected EffectsExpected EffectsⅣⅣ

Future PlansFuture PlansⅤⅤ

Current Status & ProblemsCurrent Status & ProblemsⅠⅠ

Continuously expanding road network since the opening of Gyeongbu Expressway in 1970Continuously expanding road network since the opening of Gyeongbu Expressway in 1970

Road has driven enhanced territorial competitiveness, economic growth and regional developmentRoad has driven enhanced territorial competitiveness, economic growth and regional development

Rapid expansion of road network resulted in problems Rapid expansion of road network resulted in problems such as redundant and excessive investmentsuch as redundant and excessive investmentRapid expansion of road network resulted in problems Rapid expansion of road network resulted in problems such as redundant and excessive investmentsuch as redundant and excessive investment

1

Ⅰ. Current Status & Problems

Redundant & Excessive InvestmentRedundant & Excessive Investment11

Causing side effects such as lack of passage, double-up construction of national highways and expressways, and excessive construction of higher speed freeways

- Some of expanded national highways in regional areas found that the actual traffic fell short of traffic forecast

- Double-up of expressway & Nat’l highway ring roads, excessive linear or multi-dimensional roads

Causing side effects such as lack of passage, double-up construction of national highways and expressways, and excessive construction of higher speed freeways

- Some of expanded national highways in regional areas found that the actual traffic fell short of traffic forecast

- Double-up of expressway & Nat’l highway ring roads, excessive linear or multi-dimensional roads

2

Ⅰ. Current Status & Problems

Facing demands from political circle & complaints in the region for unnecessary projectsFacing demands from political circle & complaints in the region for unnecessary projects

Environmental Degradation from quantitative facility expansionEnvironmental Degradation from quantitative facility expansion22

Damaging landscape & environment, cutting off settlementsDamaging landscape & environment, cutting off settlements

Growing maintenance costs due to expanded roadsGrowing maintenance costs due to expanded roads33

Increased financial burden according to growing fixed costsIncreased financial burden according to growing fixed costs

“Efficient implementation of road projects and comprehensive system improvement are required “Efficient implementation of road projects and comprehensive system improvement are required 3

’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09

24,842

164,7853Length of roadCost of maintenance

151,250

17,607

< Ref.: side effects of expanded public investment in Japan >

Japan has implemented excessive public investment since 1992 to stimulate demands

41% up from ’00 in maintenanceKRW 176.07 bil.(’00) 2484.2 bil.(’09)41% up from ’00 in maintenanceKRW 176.07 bil.(’00) 2484.2 bil.(’09)

* Investing JPY 59 tril. in SOC among total 136 tril. Investment for the past 10 yrs

Resulting in serious financial deficits and reduced to a debtor nation

Ⅰ. Current Status & Problems

4

6

4

4

3

2

1

0

6

4

4

3

2

1

0

11 44 77 1010 1313 1616 1919 2222 2424 2828 3131 3434 3737 4040 4343 4646 4949 5858

1.041.04

< Reference: current road facilities >

Road density (Total road lengths per land sizeRoad density (Total road lengths per land size

24th among 58 countries with 1.04(km/km2) road density (2010, IMD)

* Belgium-1st, Japan-4th, Germany-7th, U.K.-11th, France-16th, US-30th

24th among 58 countries with 1.04(km/km2) road density (2010, IMD)

* Belgium-1st, Japan-4th, Germany-7th, U.K.-11th, France-16th, US-30th

Total road lengths have increased by 8.9% for the past 10 yrs Total road lengths have increased by 8.9% for the past 10 yrs

Current road facilitiesCurrent road facilities

’00’00

4.994.99

’09’09

Total road lengths

Total road lengths

151,250151,250

164,785164,785

8.9% up8.9% up

ExpresswayExpressway

2,1312,131

3,7763,776

77% up77% up

National highwayNational highway

11% up11% up

13,81913,819

12,41312,413

Causes of ProblemsCauses of ProblemsⅡⅡ

Less conformity to Nat’l Comprehensive PlanLess conformity to Nat’l Comprehensive Plan

Less consistency in road plansLess consistency in road plans

Poor strategy for connected investment among transport modesPoor strategy for connected investment among transport modes

Separate planning of land use, road and transport result in less connectivitySeparate planning of land use, road and transport result in less connectivity

Lack of connectivity among road plansLack of connectivity among road plans11

Separate planning by local govt.s caused less consultation & coordinationSeparate planning by local govt.s caused less consultation & coordination

Unclear distinction for function and importance of each road resulted in scattered investmentUnclear distinction for function and importance of each road resulted in scattered investment

Priority standard for demand-based investment considering a section where roads and railroads competePriority standard for demand-based investment considering a section where roads and railroads compete

6

Ⅱ. Causes of Problems

Road expansion focusing on higher standard roadsRoad expansion focusing on higher standard roads

Inflexible methods and design standardInflexible methods and design standard22

Inflexible design standardInflexible design standard

Difficulty in flexible application considering regional characteristicsDifficulty in flexible application considering regional characteristics

Creating conflicts and longer time for consultation due to separated living area when designating routes(Max. 19months delayed)

Creating conflicts and longer time for consultation due to separated living area when designating routes(Max. 19months delayed)

Lack of considering environment & landscapeLack of considering environment & landscape

7

Direct and multi-leveled expansion through detour roadsDirect and multi-leveled expansion through detour roads

Ⅱ. Causes of Problems

Excessive demand from Nat’l Assembly and local govt.sExcessive demand from Nat’l Assembly and local govt.s

Causing waste of budget by investing in even less lucrative projectsCausing waste of budget by investing in even less lucrative projects

Insufficient feasibility & evaluation systemInsufficient feasibility & evaluation system33

Inaccurate demand forecastInaccurate demand forecast

Overestimates of future demand resulted in the shortfall of actual traffic in certain sectionsOverestimates of future demand resulted in the shortfall of actual traffic in certain sections

Poor evaluation systemPoor evaluation system

Delayed road projects could prolong project period without reevaluationDelayed road projects could prolong project period without reevaluation

Measuring project performance by provider cannot ensure reliabilityMeasuring project performance by provider cannot ensure reliability

8

Ⅱ. Causes of Problems

Scattered road management systemScattered road management system

Scattered road management system with less connectivityScattered road management system with less connectivity44

Conduct maintenance and management by road management agencyKorea Highway Corporation(expressway), regional administration(nat’l highway),local govt.s (provincial road)

Conduct maintenance and management by road management agencyKorea Highway Corporation(expressway), regional administration(nat’l highway),local govt.s (provincial road)

Capital area: local govt.s dialogue (Capital transport headquarter) is operated with weak coordination functionCapital area: local govt.s dialogue (Capital transport headquarter) is operated with weak coordination function

Non-capital area: wide-area transport demand management is required, but policy connection & coordination is absentNon-capital area: wide-area transport demand management is required, but policy connection & coordination is absent

Integrated management system required by metropolitan zoneIntegrated management system required by metropolitan zone

9

•Capital Transport Headquarter: operated in the form of cooperative among local govt.s including Seoul and Incheon•Capital Transport Headquarter: operated in the form of cooperative among local govt.s including Seoul and Incheon

Ⅱ. Causes of Problems

Improvement MeasuresImprovement MeasuresⅢⅢ

11

GoalGoal

DirectionDirection

TasksTasks

Raising eco-friendly green territory through efficient implementation of road projectsRaising eco-friendly green territory through efficient implementation of road projects

Integrated planning and management of road facilitiesIntegrated planning and management of road facilities

Maximizing the use of existing road facilities,Preventing redundant & excessive investmentMaximizing the use of existing road facilities,Preventing redundant & excessive investmentPursuing user-oriented & eco-friendly road projectsPursuing user-oriented & eco-friendly road projects

1. Establishing comprehensive planning of road projects1. Establishing comprehensive planning of road projects

2. Promoting efficient methods and standard for road projects2. Promoting efficient methods and standard for road projects

3. Strengthening road project investment evaluation system3. Strengthening road project investment evaluation system

4. Advancing road facility management system4. Advancing road facility management system

11

22

12

Enhancing conformity of road plan to comprehensive planEnhancing conformity of road plan to comprehensive plan

Strengthening connection of road plan to national comprehensive plan and basic national logistics planStrengthening connection of road plan to national comprehensive plan and basic national logistics plan

Connecting road projects and various development projectConnecting road projects and various development project

Nat’l Comprehensive

plan

Transportation, logistics

planRoad plan

Establishing comprehensive inter-modal management systemEstablishing comprehensive inter-modal management system

Linking and adjusting investment plans by transport modeLinking and adjusting investment plans by transport mode

- Strengthening link and adjustment of implementation period and priority by transport mode such as road and railroad

* Supplementing nat’l transport network plan(‘00~’19)

- Strengthening link and adjustment of implementation period and priority by transport mode such as road and railroad

* Supplementing nat’l transport network plan(‘00~’19)

1. Establishing Comprehensive Planning of Road Projects

33

13

Building up comprehensive planning system for major road networkBuilding up comprehensive planning system for major road network

1. Establishing Comprehensive Planning of Road Projects

Review of road ranksReview of road ranks Strengthening connection by roadStrengthening connection by road

Readjusting road ranks roads based on functions and road service levelReadjusting road ranks roads based on functions and road service level

ProvincialroadProvincialroad

Nat’l highwayNat’l highway

Establishing comprehensive plan (nat’l road network plan)Establishing comprehensive plan (nat’l road network plan)

Nat’l road network

plan(new, 20-year)

Nat’l road network

plan(new, 20-year)

Basic road maintenance

plan(10-year)

Basic road maintenance

plan(10-year)

Mid-term Investment

plan(5-year)

Mid-term Investment

plan(5-year)

Adjusting roads on boundariesAdjusting roads on boundaries

conflicts of interest among local govt.sfor linking roads on boundaries route adjustment by MLTM

conflicts of interest among local govt.sfor linking roads on boundaries route adjustment by MLTM

Improving functions of road policy review committeeImproving functions of road policy review committee

Reviewing route designation, redundant

& excessive investment, eco-friendly

guideline, reevaluating delayed projects

Reviewing route designation, redundant

& excessive investment, eco-friendly

guideline, reevaluating delayed projects

2. Promoting efficient methods & standard for road projects

11 Moving toward efficient and various methodsMoving toward efficient and various methods

Improving existing roads firstImproving existing roads first

Diversifying expansion of road capacityDiversifying expansion of road capacity

Eschewing simple expansion and improving interchanges andEschewing simple expansion and improving interchanges and

Supporting budget first for expansion project using existing road facilities at certain extentSupporting budget first for expansion project using existing road facilities at certain extent

When forecast traffic is less than 4-lane demand phase-in constructionWhen forecast traffic is less than 4-lane demand phase-in construction

Not much traffic increase expand capacity by using existing roads such as 2+1lane systemNot much traffic increase expand capacity by using existing roads such as 2+1lane system

16

Reducing scale of facility Reducing scale of facility

Over 4-lane alternative detour roads under construction

Construct 2-lane roads considering road condition and traffic

Over 4-lane alternative detour roads under construction

Construct 2-lane roads considering road condition and traffic

22

15

2. Promoting efficient methods & standard for road projects

Flexible standard for design speedFlexible standard for design speed

Breaking down design speed for landscape, environment, topography and flexibly apply such standard Breaking down design speed for landscape, environment, topography and flexibly apply such standard

* topographic condition (regional area): plain/mountain plain/ hill/ mountain* topographic condition (regional area): plain/mountain plain/ hill/ mountain

*Installing interchange: trumpet type rotary or diamond types*Installing interchange: trumpet type rotary or diamond types

Separating local communities or damaging environment due to road constructionSeparating local communities or damaging environment due to road construction

Coordinating design speed of each section and apply minimum design standard without compromising safetyCoordinating design speed of each section and apply minimum design standard without compromising safety

2. Promoting efficient methods & standard for road projects

44 Systemizing road project procedureSystemizing road project procedure

18

Expanding collection of residents’opinions

- Preventing separation of settlements and economic impacts during designation and implementation

Expanding collection of residents’opinions

- Preventing separation of settlements and economic impacts during designation and implementation

Creating green·scenic roadsCreating green·scenic roads

Phased expansion of Scenic Road and Revising ‘Scenic Road Guideline’ to consider and assess surrounding ecosystem, conditions Phased expansion of Scenic Road and Revising ‘Scenic Road Guideline’ to consider and assess surrounding ecosystem, conditions

33

* Ensuring participation of environment experts in route review, field study, and initial design * Ensuring participation of environment experts in route review, field study, and initial design

3. Strengthening road project investment evaluation system

Strengthening feasibility study for road projectStrengthening feasibility study for road project

Enhancing reliability and accuracy of demand forecastEnhancing reliability and accuracy of demand forecast

Strengthening performance-based evaluation for road projectStrengthening performance-based evaluation for road project

19

11

22

33

Verifying feasibility clearly for individual project when conducting blanket pre-feasibility study for mid-and long-term planVerifying feasibility clearly for individual project when conducting blanket pre-feasibility study for mid-and long-term plan

Verifying traffic demand forecast through national research institute

Expand target and period, verifying by outside expert * period (5yrs 1~2yrs), target area(248 3,500)

Verifying traffic demand forecast through national research institute

Expand target and period, verifying by outside expert * period (5yrs 1~2yrs), target area(248 3,500)

post evaluation by 3rd party, preventing inefficient investment

when investment necessity decreases according to conditional change, such project will be re-evaluated* projects which have not initiated for the past 10yrs or stopped for 2yrs

post evaluation by 3rd party, preventing inefficient investment

when investment necessity decreases according to conditional change, such project will be re-evaluated* projects which have not initiated for the past 10yrs or stopped for 2yrs

4. Advancing road facility management system

11

22

A single channeled and specialized road maintenanceA single channeled and specialized road maintenance

Comprehensively managing transport policies Comprehensively managing transport policies

Considering sourcing of road construction and maintenance to expert agencyConsidering sourcing of road construction and maintenance to expert agency

Capital areaCapital area Non-capital areaNon-capital area

Regional development

Regional developmentLogistics

policyLogistics

policyTransport policyTransport policy

Establishing cooperative mechanismAmong MLTM, local govt.sEstablishing cooperative mechanismAmong MLTM, local govt.s

Seoul regional Construction & management administration

Seoul regional Construction & management administration

Transport authorityIn Capital area

Transport authorityIn Capital area

20

* Consideration: commissioning to LH Corporation, private agency

* Developing system improvement plan through research and experts’opinions

(by Jun. 2011)

* Consideration: commissioning to LH Corporation, private agency

* Developing system improvement plan through research and experts’opinions

(by Jun. 2011)

Forming wide-area transport policy dialogue(Local agency, local govt.s)

Forming wide-area transport policy dialogue(Local agency, local govt.s)

Expected EffectsExpected EffectsⅣⅣ

Enhancing Financial EfficiencyEnhancing Financial Efficiency Saving Social CostsSaving Social Costs

Pursuing Green EfficiencyPursuing Green Efficiency Improving Road ConvenienceImproving Road Convenience

Preventing unnecessary projects

such as pork barrel projects

through verification

Preventing unnecessary projects

such as pork barrel projects

through verification

Ensuring participation of residents,experts in various sectorsEnsuring participation of residents,experts in various sectors

Minimizing environmental impactsby including environmental elements in each project stage

Minimizing environmental impactsby including environmental elements in each project stage

Enhancing efficiency of road network Reducing CO2 emissions saving traffic congestion cost

Enhancing efficiency of road network Reducing CO2 emissions saving traffic congestion cost

Concentrating investment and promoting efficient road operation saving congestion cost, logistics cost

Concentrating investment and promoting efficient road operation saving congestion cost, logistics cost

Enhancing efficiency in road facility operationEnhancing efficiency in road facility operation

21

Ⅳ. Expected Effects

Improving convenience of road users by ensuring stability, convenience, and eco-friendliness of roads

Improving convenience of road users by ensuring stability, convenience, and eco-friendliness of roads

Minimizing social conflicts Minimizing social conflicts

Future PlansFuture PlansⅤⅤ

22

Establishment of implementation plans for efficient road projects

- Specific implementation plans will be prepare by December 2010 by gathering Opinions of experts from the public, private sectors and academia.

Establishment of implementation plans for efficient road projects

- Specific implementation plans will be prepare by December 2010 by gathering Opinions of experts from the public, private sectors and academia.

Review of the second 5-year investment plan projects(2006-2010)That have not been completed to suspend them or reduce their scaleReview of the second 5-year investment plan projects(2006-2010)That have not been completed to suspend them or reduce their scale

Carry forward revision of the law required for amendment by Dec. 2010 along with subordinate laws and guidelinesCarry forward revision of the law required for amendment by Dec. 2010 along with subordinate laws and guidelines

Ⅴ. Future Plans