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Hangang Bus Shipbuilder Files Injunction to Stop Construction Against Operator

[비즈한국] It has been confirmed through Bizhankook's investigation that Gadeok Heavy Industries, one of the manufacturers of Seoul's first water-based public transportation system, the "Hangang Bus," recently filed an injunction against the Hangang Bus operator to prohibit the construction of its vessels. Previously, the Hangang Bus operator, determining that there were issues with Gadeok Heavy Industries' manufacturing capabilities, had changed the builder for four of the Hangang Bus vessels from Gadeok Heavy Industries to SJ Heavy Industries. Meanwhile, the Hangang Bus, which began regular operations last month, suspended passenger services after just 11 days, citing the need for performance stabilization.

According to Bizhankook’s report, Gadeok Heavy Industries filed for an injunction against Hangang Bus Co., Ltd. on August 28 to halt the construction of four hybrid-propulsion Hangang Bus vessels (vessels 5-8) currently being built. The injunction claim is valued at 16.18872 billion KRW. In June, Hangang Bus Co., Ltd. determined that there were problems with Gadeok Heavy Industries' shipbuilding capabilities and switched the contractor for the four vessels from Gadeok to SJ Heavy Industries. The hearing for the injunction is scheduled for the 13th.

An official from Hangang Bus Co., Ltd. explained, "The four vessels that Gadeok Heavy Industries is demanding to stop building are currently under a contract that was properly transferred to SJ Heavy Industries in August. We understand that the filing party is taking issue with matters such as the succession of existing subcontractors, but no such issues have been confirmed to date. There are no delays or suspensions in ship construction regarding this injunction." Bizhankook attempted to contact Gadeok Heavy Industries' office and its internal directors for their position on the injunction, but received no response.

The Hangang Bus is Seoul's first water-based public transport service. It was introduced last month by the Seoul Metropolitan Government to alleviate severe traffic congestion during rush hours and reduce public transit crowding. It operates 199-passenger vessels along a 28.9km route across seven piers on the Han River (Magok-Mangwon-Yeouido-Apgujeong-Oksu-Ttukseom-Jamsil). The service is operated by "Hangang Bus Co., Ltd.," a joint venture between the Seoul Housing & Communities Corporation (SH) and E-Land Group's affiliate, E-Cruise. The two companies hold 51% and 49% stakes, respectively.

The plan is to build and operate a total of 12 dedicated vessels, consisting of 8 hybrid-propulsion ships (vessels 1-8) and 4 electric-propulsion ships (vessels 9-12). According to the Seoul Metropolitan Government, Hangang Bus Co., Ltd. has commissioned construction to three companies: Eunsung Heavy Industries (6 vessels: 1-2 and 9-12), Gadeok Heavy Industries (2 vessels: 3-4), and SJ Heavy Industries (4 vessels: 5-8). The 8 vessels commissioned to Eunsung and Gadeok have been launched and delivered, while the 4 vessels under SJ Heavy Industries are currently under construction and scheduled for delivery in two pairs during November and December.

The Hangang Bus began passenger services on the 18th of last month. It set sail with the reputation of being Seoul's first water-based public transport, rivaling the Seine in Paris, France, and the Thames in London, UK. Initially, it operated 14 times a day from 11:00 AM at intervals of 1 to 1.5 hours. Following the Chuseok holiday, starting from the 10th of this month, it was scheduled to increase operations to 30 round trips per day (on weekdays), including express routes during rush hours, starting at 7:00 AM on weekdays and 9:30 AM on weekends.

However, passenger service was suspended after just 11 days, citing performance stabilization. After beginning service, the Hangang Bus suspended operations once on the 22nd of last month due to an electrical system issue. On the 26th, a vessel had to return mid-journey due to a steering malfunction. On that same holiday, maintenance needs were discovered during pre-departure checks, resulting in only 2 out of 4 vessels being deployed. The Seoul Metropolitan Government announced that passenger boarding would be suspended starting the 29th, and the service would shift to uncrewed test runs for about a month to enhance and stabilize performance.

Seoul Mayor Oh Se-hoon stated during a housing supply briefing on the 29th of last month, "I cannot help but address the situation regarding the Hangang Bus," adding, "I am truly sorry to the citizens of Seoul who planned to ride and were looking forward to the service." Mayor Oh remarked, "It is true that some anxiety arose among citizens as mechanical and electrical defects occurred several times during the ten days of operation. I have reached the conclusion that it would be desirable to take this opportunity to spend about a month to ensure full stability."