GS E&C has embarked on its first major infrastructure project in Australia, the North East Link (NEL) Road Project, marking a significant milestone for the South Korean construction giant. The project, awarded in October 2021 by the Major Transport Infrastructure Authority under the Victorian Government, aims to construct a 6.5km tunnel connecting the northeastern outer ring road and the eastern road of Melbourne. With a total project cost of KRW 10.1 trillion (approximately USD 8.5 billion), the NEL Road Project is set to be completed by December 2028.
On July 24, a smoking ceremony was held at the NEL road construction site in Melbourne to pray for safety ahead of the commencement of the Tunnel Boring Machine (TBM) operation. The ceremony was attended by GS E&C CEO Huh Yoon-hong, the client, partner companies, and numerous key stakeholders. The smoking ceremony, a traditional Aboriginal ritual, underscores the importance of respecting indigenous traditions in modern infrastructure projects.
The TBM method, which involves using large machinery to automatically excavate circular tunnels, will be employed to excavate the 6.5km tunnel. This method is favored for its reduced vibration and noise, as well as increased safety, making it an ideal choice for the NEL Road Project. The commencement of TBM operations signifies the start of full-scale construction.
The NEL Road Project is a Public-Private Partnership (PPP) project, a model that has recently gained renewed attention for fostering cooperation between the private sector and the government. The consortium’s equity investors include GS E&C, Capella, John Laing, DIF, Pacific Partnership, and Webuild, while the construction Joint Venture (JV) comprises GS E&C, Webuild, CPB, and China Construction Oceania.
GS E&C’s construction cost for the project is approximately KRW 2.8 trillion, making it the second-largest project undertaken by the company since the UAE plant order in 2009 and the largest single project awarded in Australia. This venture has garnered significant attention, highlighting GS E&C’s strategic entry into the Australian infrastructure market.
A GS E&C representative emphasized the company’s expertise, stating, “Based on our construction technology accumulated over many years overseas and our capability to execute PPP projects, we plan to successfully complete our first infrastructure project in Australia, the NEL.”
The NEL Road Project is not only a testament to GS E&C’s construction prowess but also a significant development for Melbourne’s infrastructure. The project is expected to improve transportation links, stimulate economic growth, and create numerous job opportunities in the region. As the project progresses, it will likely set a precedent for future collaborations between the private sector and government entities in Australia.