South Korea’s trade officials and their Moscow counterparts have agreed to cooperate for a landmark project in the Russian city aimed at building 55 major hubs in what is dubbed the “Transportation Interchange Hub.”
SAABAA International Limited, a company in charge of attracting Korean partners and investors, said progress has been made in the massive project worth $10 billion so that Korean companies could share their expertise and secure investment opportunities.
“Advanced technology and know-how of Korean companies in the field of urban engineering, transportation infrastructure development, metropolitan transportation system integration, IT and other knowledge-based solutions will add to the quality of service provided by TIHs in Moscow,” said Sohn Myoung-won, president of SAABAA International.
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Sohn Myoung-won (left), president of SAABAA International Limited, and Sergei Pak, CEO of RZD-RV, pose for a photo in Moscow after agreeing to work together on a landmark transport hub project. (SAABAA International) |
Sohn, former CEO of Ssangyong Motor, Hyundai Mipo Shipyard and MAXON Electronics, said he’s now leading top-level discussions in Moscow to accelerate the TIH project in partnership with Korean investors.
The city of Moscow intends to attract Korean investors and corporate partners in constructing and managing the transportation hubs in a large-scale project to solve the city’s chronic traffic problem.
The project is largely organized by Russia’s largest transport carrier Russian Railways, also called “RZD,” and the Moscow city government. In detail, the Russian transport giant’s subsidiary RZD-RV is handling foreign investment and partnership tasks for the interchange hub project, and special purpose company RV-Metro is set to implement the construction of 55 TIHs.
SAABAA International and RZD-RV signed a memorandum of understanding in March to open up chances for Korean investors and corporate partners to join the project.
On April 5, Sohn was appointed a member of the board of directors at RZD-RV, marking the first Korean to make it into a Russian public company’s boardroom.
All of this is designed to help SAABAA International attract financial investors and technological partners in Korea on behalf of RZD-RV, the company said.
On Monday, SAABAA’s Sohn met with Sergei Pak, CEO of RZD-RV, and discussed details to accelerate the project both in Korea and Russia. Pak also represents SAABAA in Russia and also acts as CEO of System Service LLC. The partnership has been made possible due to the decade-long business relations between Sohn and Pak.
Pak said, “TIH projects are initiated by the city government of Moscow and Russian Railways, and these projects will be at the center of long-term business plans of both institutions.”
Pak said that he’s very pleased to have Sohn involved in the project. “His expertise and extensive business network in Korea will greatly contribute to the success of TIH projects. TIHs will serve to improve Moscovites’ quality of life and become an essential venue for citizens. We welcome all Korean firms interested in the long-term partnership in this project together with RZD-RV and furthermore with Russian Railways.”
Each TIH will house transportation infrastructure for railroads, metros, buses and taxis along with commercial facilities such as large shopping centers, cafes, restaurants and hotels.
By Yang Sung-jin (
insight@heraldcorp.com)
