Cable cars, monorails to require re-licensing within 20 years

Licensing standards and safety oversight for cable cars, monorails and other track-based transport operations will be significantly tightened under new regulations taking effect Friday.

South Korea's Ministry of Land, Infrastructure and Transport said revised enforcement decrees and rules under the Track Transport Act take effect Friday, clarifying license validity periods and re-licensing criteria while strengthening safety management requirements, including the preparation and implementation of safety plans and corrective measures.

The parent law was amended in March to require operators to obtain re-licensing within 20 years in order to reinforce the public-interest character of track transport businesses. The enforcement decrees and rules set out the detailed provisions. The move aims to put to rest controversy over whether operators — such as those running the Namsan cable car — had been allowed to run their businesses indefinitely on the strength of a single initial license, effectively enjoying a permanent concession.

Under the revised rules, operators must apply to their local government for re-licensing no earlier than two years and no later than one year before their license expires. When granting or renewing a license, local governments will set an appropriate validity period by reviewing materials submitted by the operator, including the purpose of the operation, the type and method of service, operating plans, financing arrangements and projected annual ridership.

Track operators will also be required to draw up safety management plans covering inspection and maintenance schedules, staffing and emergency procedures, and to submit any revisions or updates within 30 days of making changes. Local governments may review the adequacy of such plans and order operators to supplement, improve or correct them if they fall short.

Operators that fail to establish a safety management plan or comply with a corrective order face administrative sanctions scaled to the number of violations — ranging from a 10-day, 30-day or 60-day suspension of operations to revocation of their license or approval.

In addition, local governments must factor in safety inspection results, user safety considerations and the appropriateness of operating performance when setting validity periods at the time of licensing or re-licensing.

The revisions also strengthen the public-interest dimension of track transport by requiring operators to submit plans for environmental conservation and the promotion of public welfare when local governments decide whether to grant or renew a license and for how long.

Jo Seong-gyun, the ministry's director of railway safety policy, said track facilities had been difficult to supervise after initial licensing because management had largely been left to operators' discretion. "We expect that the legal revisions — by enhancing the safety, environmental soundness and contribution to public welfare of track transport businesses — will allow the public to use these facilities more safely," Jo said.