November 21, 2024

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Construction progresses on the cable-stayed bridge of the Nakkas-Basaksehir section, a key segment of the Northern Marmara Motorway in Istanbul, Turkiye. (Korea Expressway Corporation)

Korea Expressway Corporation is making progress on its largest overseas project to date, a highway in Turkey that could serve as a gateway for expanding its expertise into Europe and beyond.

The company celebrated a key milestone last month by signing a financial agreement for the Nakkas-Basaksehir Motorway in Istanbul. The expressway, at 2.1 trillion won (about $1.5 billion), is part of Turkey’s ambitious efforts to improve regional transportation.

A critical link in Turkey’s highway network

The Nakkas-Basaksehir Motorway is the final piece of the Northern Marmara Motorway, a major infrastructure project aimed at easing traffic in Istanbul and boosting connectivity between Europe and Asia. Stretching 31.3 kilometers, the road will include four to eight lanes and is set to be completed in just over two years. After construction, KEC and its partners will operate and maintain the highway for 15 years before handing it over to the Turkish government.

This expressway is part of Turkey’s long-term vision to expand its highway system from 3,600 kilometers today to over 20,000 kilometers by 2053. By working on this project, KEC not only contributes to Turkey’s infrastructure goals but also gains valuable experience in managing large-scale international projects.

A new approach to overseas business

KEC’s role in this project signals a shift in its international approach. Instead of simply bidding on construction contracts, the company now takes on a co-investor role in public-private partnership projects. This allows KEC to share risks and rewards with partners, such as Turkey’s Ronesans Holding and Korea’s Samsung C&T, while maintaining a more active role in operations.

“This is a turning point for us,” said Ham Jin-gyu, CEO of KEC. “By participating in PPP projects like this, we’re not only reducing risks but also setting the stage for more meaningful, long-term opportunities in global markets like Europe.”

This move aligns with the Korean government’s broader push to encourage companies to take on overseas PPP projects, which can provide sustainable benefits for Korea and the host countries.

Sharing Korean expertise

For KEC, the project is also a chance to showcase its expertise in highway maintenance and management, developed over 50 years of operating Korea’s road networks. Once in operation, the company plans to send experts to Turkey to share advanced maintenance techniques tailored to local conditions. This exchange will strengthen KEC’s reputation while helping Turkey modernize its road management capabilities.

“Turkey’s role as a bridge between Europe and Asia makes it an ideal partner for us to introduce our road management technology and explore expansion into broader markets,” a KEC official said.

Officials and executives gather in Istanbul on Oct. 18 to mark the signing of a $1.51 billion financial agreement for the Nakkas-Basaksehir Motorway, the final section of Turkiye's Northern Marmara Motorway. (Korea Expressway Corp.)

By Moon Joon-hyun (mjh@heraldcorp.com)