KOTI - Korea Transport institute

1. Introduction 

A. Background and Need for the Study

1) Background

While government investment in new highway construction is declining, the number of public-private partnership (PPP) highways is increasing. As of 2023, PPP highways constitute approximately 17% of the total length of tolled roads in Korea. This shift reflects a changing governmental focus from construction to management and maintenance, thereby promoting further private sector participation that leverages private capital and innovation.

However, PPP highway operators face worsening business conditions due to rising construction and financing costs amidst high inflation and interest rates, coupled with stricter safety regulations. Additionally, management challenges are growing due to the increasing number of projects reaching the end of their concession periods. In response, the Ministry of Strategy and Finance (in collaboration with related ministries) announced a revitalization plan for private investment on October 2, 2024. This plan includes 18 key initiatives in four strategic areas, such as "revitalizing private investment in operation and maintenance" and "expanding flexible tolling policies" in the road transport sector.

2) Need for the Study

The Korean government has introduced several policy initiatives to manage toll levels, including the 2018 "Roadmap for Toll Management on PPP highways." The establishment of the Center for PPP Highway Support (CEPHIS) in 2019 aimed to improve oversight and support for private highway operations and maintenance. It is now critical to evaluate the effectiveness of these initiatives and to define the role and capacity of CEPHIS during its initial phase (2019–2023). Furthermore, with evolving market conditions, there is a need for a mid- to long-term operational management strategy for PPP highways. 

B. Objectives and Methodology

This study aims to:

- Assess the current management support system for PPP highways;

- Compare the operational performance of public versus PPP highways; and

- Propose institutional and procedural improvements for effective management of private road projects.

The methodology includes:

- A comparative analysis of the management systems and organizational structures of public and PPP highways;

- Evaluation of operational performance in terms of traffic safety, geography, and congestion; and

- Identification of lifecycle management and support tasks, and recommendations for legal and institutional improvements.

C. Review of Prior Research and Study Differentiation

Most previous studies focus on task-specific improvements related to PPP highway management centers. However, comprehensive proposals that address system-level reforms, legal frameworks, and full lifecycle management are lacking. This study contributes by offering a holistic improvement strategy using data from the PPP highway operational management system “PPP Highway Operation and Management System(PHOMS).”

 

[ Contents ]

1. Introduction

1-A. Background and Need for the Study

1-B. Objectives and Methodology

1-C. Review of Prior Research and Study Differentiation

2. Analysis of the Private Road Management Support System

2-A. Publicly funded and PPP highway Management Support Systems: Legal and Institutional Overview

2-B. Status of Operation Management Systems

2-C. Project Implementation Procedures and Related Roles

2-D. Implications

3.Comparative Analysis of Operational Management Performance

3-A. Overview of PPP highway Management Policies

3-B. Comparison of Operational Performance: Traffic, Safety, and Congestion

3-C. Analysis of Financial Performance by Route

4. Streamlining the Private Road Management System

4-A. Establishing an Improvement Direction

4-B. Detailed Action Plan

5. Conclusions and Policy Recommendations