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LG TEK consortium, 'The winner' in the in the ITS
Category News Date 2001.05.15 View 8965
As big projects in the first half this year, virtually the first year of intelligent traffic system (ITS) market, have decided their operators, a clear contrast among companies comes in sight according to their amounts of orders received.

The large-sized ITS projects so far this year are the urban highway ITS of the Seoul City on the second construction in the first stage, the high-tech traffic model city projects of the Jeju, Daejeon and Jeonju City, which are total four amounting to 100 billion won.

Of those, two projects that were of the Seoul City and Daejeon City selected LG consortium as the major operator. The consortium received the highest amount of orders during the first half of this year. SK C&C was selected as the operator for the Jeju City. Concerning the project of the Jeonju City, Hyundai Information Technology and Daewoo Information System, scoring the highest mark in the technical evaluation, are most likely to be selected as the operator.

LG consortium has participated in almost every project and dominated the ITS market in the first half of this year, putting forward LG TEK, which guarantees a perfect score in performing capability, as the major operator, and combining the forces of LG Industrial System, LG Electronics and LG-EDS. In the project of the Seoul City, even though falling short of Hyundai Information Technology by 0.5 point in the technical evaluation, LG consortium overtook it later in the performing capability and finally selected as the operator.

The project of the Daejeon City, the biggest one in the ITS market during the first half of this year, had been the target of Samsung SDS for a long time. As it was almost certain that Samsung SDS would be selected, only three companies that were Samsung SDS, LG TEK and Bosung Telecommunication participated and the competition was relatively moderate. However, LG TEK consortium overtook Samsung by 0.03 point in the technical evaluation, and went slightly ahead in the evaluation of performing capability and price as well. As LG Technology, which initially had participated in the competition aiming to be the second, was selected as the final operator, it was greatly encouraged, while Samsung SDS, the most likely candidate, was heavily damaged on its entire business of the first half of this year.

It is prospected that the ITS industry will be restructured as it enters the stage to finish the ordering for the projects in the first half of this year. Since the late last year, companies have launched or expanded their ITS division competitively, but the manpower will be reshuffled on a large scale according to the records of orders received. The companies in the industry have already started reviewing their ITS business strategies and establishing plans to get orders in the second half of the year

The major projects in the second half of this year are the Olympic Road project of the Seoul City and the project of the Ulsan City. It is expected that the winners and losers in the first half of this year have a hot competition once more to keep or to regain their positions.

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