쌍용건설

-Well-deserved transformation of Ssangyong E&C into a high-soaring swan from LTA’s ugly duckling in 2014 with onset of corporate recovery program
Just as the new year of 2014 commenced, disheartening news from South Korea arrived at the headquarter of Singapore Land Transport Authority (LTA). The news delivered announcement of Ssangyong Engineering and Construction entering corporate recovery program due to financial distress. At the time, Ssangyong E&C was responsible for two large-scale infrastructure projects, namely the Marina Coastal Expressway (820bn won) and Downtown Line (700bn won).

Previously in June 2013, LTA had gone through a painful and loss-making experience with Alpine, an Austrian construction company, which renounced two construction sites for downtown subway project due to sudden default of the company.

The overall construction cost surged with the delay in the construction schedule coupled with the search for and appointment of a new contractor for the project. Making matters worse, payment to sub-contractors were not properly executed, hence the negative repercussions to the whole construction industry. Against this back, it was only natural for LTA to feel ‘once bitten, twice shy’ with the news from Ssangyong E&C.

Without sparing any time since the announcement, on the first week of January, Chairman and CEO of Ssangyong E&C, Kim Suk-joon visited LTA headquarter in Singapore and explained about the corporate recovery program and its benefits of improving the financial structure and soundness of the company. Chairman Kim also made a case to request for support from LTA to trust the construction techniques and expertise of Ssangyong E&C and allow the company to continue with the project. In fact, according to the contract, construction company entering a recovery program may be considered as grounds for termination of the construction contract.

After thoughtful deliberation, LTA shared the view that Ssangyong E&C complete the project would be a win-win proposition for both parties. Over the years, Ssangyong E&C delivered excellent track record of project management to the extent of being assessed as the best partner for Singapore government initiated projects as well as built mutual trust from top management to on-site working team. It was clear that these were decisive factors for the decision by LTA.

Moreover, the fact that in 2013, Ssangyong E&C set world record of 10million man-hours of accident free subway construction site and received Contractor Challenge Shield, which is the top award at the Annual Safety Award Convention (ASAC) contributed to recognizing the advanced construction technique and expertise of Ssangyong E&C.

LTA concluded to continue commissioning Ssangyong E&C for the project, however in the perspective of the project owner, the concerns were not fully eliminated and in some sense, the construction company was considered an ugly duckling at the site. However, as the project progressed such concerns or anxieties absolutely disappeared.

In March 2015, Ssangyong E&C graduated from the recovery program and everyday ‘accident-free’ record was in the making. By July 2015 for the first time ever in the history of subway constructions, the amazing 16million man-hours of ‘no-injury/accident-free’ record was achieved and by end of 2015, the DTL was successfully completed.

On December 26, Singapore Prime Minister Lee Hsien Loong attended the opening ceremony of Downtown Line 2 and delivered a congratulatory speech praising the DTL sector 921, which made it even more famous. “We also had to work with urban and transport planners to find ingenious ways of constructing some of the stations, particularly Rochor Station, given the limited space and the Rochor Canal which was above it. In fact, LTA had to divert the road more than 50 times over the last seven years. Even Rochor Canal itself had to temporarily give way to construction. Thank you to all who have played a role in making DTL2 a reality!” (Prime Minister Lee Hsien Loong)

The DTL sector 921 made headlines with the high bidding price of 700billion won per 1km, that is, 700million won per 1m. Of the total DTL line, this sector which required the most advanced technique was the most expensive site.

Even though the construction section is approximately 1 kilometer, all of the existing major subway construction techniques (NATM, TBM, Open-Cut) had to be used for this sector as the existing North-East Line was only 5 meters above the site. It was an extremely complicated sector, truly worth the nomenclature of diabolic sector, with 10 lane road and Rochor Canal on the ground above which had to be shifted and detoured more than 50 times during seven years for the construction procedure.
The accomplishment was even more astonishing as such a complicated site did not record a single accident for 16million man hour, a world record as of 2015. With the completion of the project, on November 25, at the LTEA 2016, Land Transport Authority announced Ssangyong E&C as the winner of Best Managed Rail/Road Infrastructure, which is the most prestigious award for civil engineering and infrastructure construction.

On the night of the LTEA ceremony, more than 50 global construction companies were bating their breath waiting for Minister for Infrastructure Mr. Khaw Boon Wan to announce the winner of the grand award. Finally, at the end of the 3-hour long ceremony, the Minister’s announcement resonated throughout the hall, “Winner is Ssangyong DTL921!”

At that moment, not only the site manager but the staff and ex-pats in Singapore cheered with joy as they took the center stage while the participants from global construction companies, design companies, consulting companies and industry makers applauded. It was the moment when the ugly duckling transformed into a esteemed and admired swan.

Introduction of LTEA (Land Transport Excellence Awards)

Land Transport Excellence Awards is the most prestigious award given to the civil engineering/infrastructure
industry presented by the Land Transport Authority on behalf of the Singapore government.

The biannual Land Transport Excellence Awards (LTEA) was inaugurated in 2008 by the Land Transport Authority to recognize industry partners and individuals who have made significant contributions to Singapore transport (road, rail, subway). The candidates are ed from completed projects involving high complexity and accident-free sites since initiation to completion and the judging panel consists of members from LTA, field experts, academia, and government agencies. The assessment is carried out for approximately 5 months. Due to the high standards being ed as a candidate itself regardless of winning the award is considered as being recognized of the capability and expertise.

There are three categories for the awards which are design, safety and best management. Best management is given to only one company based on comprehensive evaluation of construction process and quality control. This year approximately 50 sites were in competition.

Ssangyong E&C (Chairman and CEO Kim Suk-joon) received the LTEA 2016 Best Managed Rail / Road Infrastructure Award for the Singapore DTL 921 winning the competition from world-renowned construction companies from Japan and Europe. This is the first time for a South Korean construction company to receive this prestigious award.