Archive for the ‘Railways’ Category

A Scientific City Pyongsung Became a Distributors Haven for Goods

Monday, July 9th, 2007

Daily NK
Kim Min Se
7/9/2007

Pyongsung, a city located in the province of South Pyongan has recently been targeted as a scientific city transformed into distribution hub.

In the late 1960’s, North Korean authorities established Pyongsung as an area for scientific research with a population of 300,000.

In Pyongsung, there are 25 scientific research centers beginning with a nature centre. Further, there is Pyongsung Scientific University and a training centre for scientists and engineers. Pyongsung lies on the outer-skirts of Pyongyang near the districts of Soonan, Samsuk and Yongsung.

Park Chan Joo (pseudonym) a North Korean tradesman on business in Dandong, China introduced the changes occurring in Pyongsung in a telephone conversation with reporters.

Park currently works as an employee for the Myungjin Trade Company and imports goods needed for everyday living into North Korea.

Park said, “All goods made from China pass through Shinuiju and are generally dispatched from Pyongsung to each region for sale. This includes eastern regions such as Hamheung and Wonsan. Of course traders from Sariwon, Haeju and Nampo in southern provinces also come to Pyongsung to receive their goods.”

Regarding Pyongsung which developed into a distributor of imports, Park said, “The delivery cost is double if goods made from China pass through Shinuiju and are delivered directly to eastern and southern regions. However, stopping over at Pyongsung can make a profit on time and cost effective.”

Further, he said, “It’s close to eastern regions and in the vicinity of southern regions. This area has increasingly become an intermediary wholesalers district with the rise of warehouses.”

Park said, “We are located right next to Pyongyang where the population is greatest. Also, many Pyongyang citizens with high standards of living compared to other regions come and buy the goods.”

“It only takes about one hour to travel from Pyongyang to Pyongsung via car or train. Tradesmen and citizens must obtain a travel permit to enter Pyongyang, but any North Korean citizen can easily come to Pyongsung with an ordinary identification card. Nowadays, you can travel to any special district (excluding Pyongyang and border regions) as long as you have an identification card” he added.

Also, Park said “There are more and more people wanting to living in Pyongsung because of trade” and informed, “All this happened as Pyongsung changed into a centre for wholesalers. Even up until a few years ago, it wasn’t so hard to live in Pyongsung, but now you have to pay thousands of dollars to move in the area to Pyongsung’s People’s Safety Agency (police).”

As Pyongsung emerged into a distributors haven, more and more long distance bus services have been operated connecting rural districts to Pyongsung city.

Kim Jong Hoon (pseudonym) a Shinuiju resident who came to Dandong to visit his relatives said, “People with money hire second hand buses made from China and register the vehicle at the traffic registry and operate the services while offering some profits” and “It takes 3 days to get from Shinuiju to Dancheon in South Hamkyung. It took me 3 days to go to Pyongsung, then from Pyongsung to Wonsan and then Wonsan to Dancheon.”

Presently, the only direct bus services in operation from Pyongsung are to Shinuiju, Wonsan, Sariwon, Nampo and Haeju.

Institute for Far Eastern Studies (IFES)
NK Brief No. 07-7-9-1
9/7/2007

The North Korean city of Pyongsung, situated in the South Pyongan province, is undergoing a transformation. Previously known as the center of North Korean scientific research, it is now becoming a distribution hub for goods imported from neighboring China. Pyongsung, with a population of approximately 30,000, was established by DPRK authorities in the mid 1960s in order to serve as a center for scientific studies. It is a satellite city on the outskirts of Pyongyang, bordering the Soonan, Samsuk, and Yongsung areas of the capital. The Institute of Natural Sciences and 24 other scientific research centers are located there, along with the Pyongsung College of Science and numerous scientific and technical training facilities.

These days, most Chinese imports being brought into the country through Shinuiju are coming though Pyongsung before being sold to various regions throughout the country. Traders from the east-coast cities such as Hamheung and Wonsan, as well as Sariwon, Haeju, Nampo and other areas regularly travel to Pyongsung in order to stock up on goods.

Located close to eastern cities and bordering southern provinces, Pyongsung is becoming the new distribution center of Chinese goods due to the considerably lower cost of delivering wares through Shinuiju and directly to these regions. This new route is much more lucrative in terms of both cost and time. Therefore, the number of wholesalers erecting warehouses and filling orders in the city has been growing quickly.

Pyongyang, the capital city with a population greater than any other city in the North and a higher standard of living than the rest of the country, is only one hour away by train or car, and so many Pyongyang residents have been purchasing high-end goods from there.

Traders and ordinary North Koreans need a travel permit with an approval number in order to enter Pyongyang, but anyone can easily travel to Pyongsung with only a general registration permit. In recent times, North Koreans can travel throughout the country with only a resident permit, with the exception of some particularly sensitive areas such as the border region or the capital city. Recently the number of people wishing to live in Pyongsung in order to trade has been on the rise. Only a few years ago, it was relatively easy to move to Pyongsung, but today someone wishing to relocate in this new market must hand over several thousand dollars. 

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Russia, North sign deal for a joint railway

Monday, May 28th, 2007

Joong Ang Daily
5/28/2007

Russia has its own dreams of a cross-border railway, linking its tracks to North Korea.

The former communist country has signed a non-binding deal with the communist country to rebuild a section of railway from the Russian border station of Khasan to the North Korean port of Najin, a Russian radio station reported yesterday.

Representatives of the Russian Railways and the North’s Ministry of Railways signed the memorandum last April at the end of the four-day talks held in Pyongyang, the Voice of Russia said.

A container terminal in Najin is the end goal of the new joint venture. After the repairs and reconstruction are completed, the two sides plan to ship freight from Northeast Asia to Russia and Europe, it said.

To solve technical and financial issues connected with this project, working groups will be set up. The first meeting is scheduled in Pyongyang next month.

After resolving practical issues, the two sides plan to organize a meeting of the leaders of the two countries’ railways to sign an agreement.

The restoration of the railway from Khasan to Najin will make it possible in the future to link the Trans Korean Railway to the Trans Siberian Railway, according to Russian media reports.

On May 17, two trains crossed the Military Demarcation Line dividing the two Koreas for the first time since the end of the 1950-53 Korean War. South Korea hopes the historic test runs will lead to the connection by railway of the Korean Peninsula, China and Europe.

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Inter-Korean railroad faces huge obstacles

Monday, May 21st, 2007

According to the Joong Ang Daily (2007-5-21):

It must have been the most expensive train ride in history. A ticket to cross the border between the two Koreas, a 90-minute journey over 30 kilometers, cost more than 2.7 billion won ($2.9 million) per person last week.

On Thursday, 200 South Koreans boarded two trains on the reconnected Gyeongui and Donghae lines on the west and east sides of the peninsula to chug across the Demilitarized Zone in a show of potential unity. The cost to South Korea, so far, has been 545.4 billion won to reconnect the sections of the cross-border railway severed by the Korean War.

While there are no concrete plans for further runs, the South Korean government has dreams of an inter-Korean rail network that would help the peninsula, cut freight shipment costs dramatically and link Korea by rail to the vast markets of China and the natural resources of Russia.

But to get there from here, the money spent so far on the test run is a pittance. Assuming that the enormous political obstacles to dealing with the North could be overcome, experts say it could cost as much as $10 billion to overhaul the slow, obsolete and backward rail infrastructure of North Korea.

That has not stopped some officials from insisting it can happen. On May 14, Unification Minister Lee Jae-joung announced a three-step plan for an inter-Korean railroad.

The first step would be to use a section of the Gyeongui Line, connecting Seoul and Shinuiju in the North, to serve the Kaesong Industrial Complex project. Transporting goods in and out of Kaesong and allowing North Korean workers to commute to the inter-Korean industrial complex by train is part of the plan.

The next step would be expanding use of the Gyeongui Line up to Kaesong for South Koreans, so that commuters to the complex and South Korean tourists visiting Kaesong could ride the train.

And finally, the South wants to operate trains on a regular basis between Seoul and Pyongyang.

“As of now, providing transportation for goods and commuters to Kaesong and allowing Mount Kumgang tourists to travel by train are current demands,” Lee said at the briefing. The Donghae Line, running between Yangyang and Anbyon in the North, will be used for the Mount Kumgang trip.

“More than 10 billion won worth of goods is produced in Kaesong,” Lee said. “More than 13,000 North Koreans are working there and commuting has become a serious issue.”

Lee has even more ambitious dreams ― the building of a rail line to connect Korea with Europe. “The reconnected inter-Korean railroad will be connected to Russia, one of the largest reserves of natural resources in the world, and China, to provide new economic opportunities,” Lee said. “We need a serious discussion on this with the North.”

Lee, however, admitted that there are enormous obstacles. Gaining the cooperation of the North’s hard-line military, which has been reluctant to open the border to train crossings, and modernization of the outdated North Korean rail infrastructure are among them.

Continuing his drumbeat for the project, after the test run, Lee said South Korea will gladly pay for updating the North’s railroad network ― and cost is no object. “No matter how much it will cost, it is an investment for our economy,” Lee said Friday. “The research is ongoing to estimate the cost, so it is hard to make the number public.”

Estimates vary widely about the cost of modernizing the North’s railroads. Lim Jae-gyeong, a researcher at the Korea Transport Institute, estimated that upgrading the North’s sagging rail networks, for both the Gyeongui and Donghae lines, would cost from 6.5 trillion won to 8 trillion won.

Kim Gyeong-jung, the team leader for inter-Korean railroad networks at the Ministry of Construction and Transportation, cited a Russian report that estimated it would cost up to $3.5 billion “to modernize the railroads in the North and connect them with the Trans-Siberian Railroad.”

Ahn Byung-min of the Korea Transport Institute put the figure at $10 billion for the project, also citing previous Russian reports.

Russia is enthusiastic about the prospects, though, and it conducted three surveys of the North’s railroad infrastructure between 2001 and 2003. The project may accelerate when the two Koreas and Russia begin railroad talks next month.

“We are pushing to hold talks with Kim Yong-sam, the North’s railroad minister, and Vladimir Yakunin, president of the state-run Russian Railways company, at the end of next month in Pyongyang,” said Lee Chul, head of the Korea Railroad Corporation. “The South and Russia have already agreed and the North responded positively.”

The meeting will focus on linking a trans-Korean railway with the trans-Siberia railway. By linking to the Russian lines, Vladivostok could be reached directly by rail from Busan. Researchers say the connection would enable freight to be shipped from Busan to Moscow by rail in just eight days. The transportation cost would be half of the current rate for sea shipments, which is about $600 for a 20-foot container.

The immediate challenge is the infrastructure. Rail is the backbone of North Korea’s transportation system, Ahn said. About 60 percent of passenger traffic and 90 percent of freight is carried by train. With two main rail lines running on the east and west sides of the country, Ahn said, the North Koreans have tried unsuccessfully to connect the systems since the 1970s.

“As of late 2005, the North had about 5,248 kilometers of rail, but 98 percent of them are single-track lines,” Ahn said, meaning that the traffic that can be carried is limited to one train at a time. “Most of the other infrastructure, such as bridges, tunnels, stations and communication systems, is also extremely outdated.”

The trains also run at very slow speeds, between 30 and 60 kilometers an hour. “The speed has not changed much since 1956,” Ahn said. “From Pyongyang to Shinuiju, the distance is 223.6 kilometers. By express, it would take about five hours and five minutes, so the average speed is about 40 kilometers per hour,” Ahn said. “But the regular trains take more than 11 hours.” He noted that there are also no set timetables and service is erratic and sometimes dangerous.

Ahn, who has visited North Korea several times to examine the fraying rail network, provided some extreme examples of how the North tries to cope. “Russia and China often provide food aid to the North via trains,” Ahn said. “When train cars from the two countries arrive, the North, under bilateral treaties, must send back the trains within six months. Rarely are the actual train cars returned, instead China and Russia often receive older train cars ready to retire from service.”

About 2,000 train cars sent from China and Russia have thus been marked as “made in North Korea” and put to use, Ahn said.

“North Korea’s founder Kim Il Sung once said the operation of a railroad is like the circulation of blood in the human body,” Ahn said, “Based on that expression, you could say that North Korea’s rail network is a patient suffering from a serious circulatory disease.”

Read the full story here:
Inter-Korean railroad faces huge obstacles
Joong Ang Daily
Ser Myo-ja
5/21/2007

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Koreas, Russia to Discuss Rail Link

Thursday, May 17th, 2007

Korea Times
Kim Yon-se
5/17/2007

Senior officials of South Korea, North Korea and Russia will likely meet soon to discuss linking the Trans-Korean Railway (TKR) and the Trans-Siberian Railway (TSR), the chief executive of the Korea Railroad Corp. (KORAIL) said Thursday.

The three countries plan to hold a second round of talks for railway cooperation in Pyongyang in late June, said KORAIL President Lee Churl.

In a meeting with reporters in Munsan, north of Seoul, Lee said, “We’ve already reached an agreement with Russia and received a positive reply from the North.”

If the North accepts the proposal, Lee will meet his North Korean and Russian counterparts to discuss the matter on the basis of the first tripartite meeting in Russia in March 2006.

The connection of TKR and TSR, dubbed the “Iron Silk Road,” is expected to bring enormous economic benefits to the two Koreas and Russia.

Experts say it is expected to cut logistic costs as well as freight delivery times substantially.

First of all, inter-Korean projects including tours to Mt. Geumgang or Gaeseong, an ancient capital city in North Korea, will likely be activated .

Freight transportation fares between Incheon and Nampo in the North are expected to fall by 25 percent on average by utilizing the railway instead of ships.

It takes about 30 days and costs $2,213 for conveying 1 TEU (20-foot equivalent units) of freight between Busan and Moscow by ship. In comparison, it would take about 15 days and $1,822 if the railways were linked.

The Busan New Port has recently been designed to make Korea a logistics hub in Northeast Asia.

The port is likely to provide another advantage when the railroad among the two Koreas and Russia is connected.

It will become both the starting and ending point of the “Iron Silk Road,” crossing the Eurasian continent via the Trans-Siberian, Trans-Manchurian and Trans-China railways.

The port authority plans to build a logistics complex on a 1.2 million-square-meter lot in the northern container pier of the new port by 2008.

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Inter-Korean railway test

Thursday, May 17th, 2007

There has been a plethroa of articles on the ROK/DPRK train crossing.  Here is a grab-bag of facts and sources:

17korea337.jpg

Joong Ang Daily
5/15/2007
Unification Minister Lee Jae-joung expressed hope that regular inter-Korean rail services would transport workers to an industrial complex in the North’s city of Kaesong as well as serve as a mode of transportation for South Korean tourists at the Mount Kumgang resort.  However, North Korea has only agreed to one test run.

The sticking point was the number of passengers aboard the trains. South Korea stressed the need for an equal number of North Koreans, but North Korea declined the offer, citing unspecified reasons, ministry officials said. The two sides will exchange passenger lists via an inter-Korean economic office in Kaesong tomorrow.

The two Koreas are set to conduct test runs on a 27.3-kilometer (17-mile) line between Munsan Station and Kaesong Station in the western section, and on a 25.5-kilometer line between Jejin Station and Kumgang Station in the eastern section.

Rare experience aboard N. Korean train across the border
Yonhap
Sohn Suk-joo
5/17/2007

At the urging of North Korean conductors, 100 South Koreans and 50 North Koreans boarded a five-car train at 11:25 a.m. With no speaker system at Kumgangsan Station at the North’s scenic mountain along the east coast, conductors repeated “Please board the train” through a loudspeaker mounted upon a South Korean-made Hyundai Starex utility vehicle.

Painted green on the main body and the roof a faint gray, the facade of the train was far from modern. “The train looks like South Korea’s obsolete third-class train, but its ability is better than that,” said Lim Jong-il, a South Korean official at the Ministry of Construction and Transportation.

South Korean Construction Minister Lee Yong-sup, Kim Yong-sam, the North’s railway minister, and some 20 South and North Korean journalists crowded into the second car of the train. The smell of new paint assailed the nostrils upon ascending the steps, while a pair of portraits of Kim Il-sung and his son Kim Jong-il hung on the wall above the door.

The seating arrangement was face-to-face, and refreshments for passengers were set on a small table in front of the window — one lemon-lime soda, one strawberry juice, one bottled water, two apples and a pear. North Korean female attendants served a cup of ginseng tea for passengers later.

The upright, ivory-colored vinyl seats were a little bit uncomfortable and did not recline, but the cushions were softer than they appeared to be.

Outside the window, a uniformed North Korean conductor waved a red flag and goose-stepped past the train, which signaled the impending departure. A few North Korean security officers came inside to check the number of passengers and asked journalists jostling for position to sit down.   

At 11:27 a.m. a long whistle sounded, reminiscent of an old-time steam locomotive. The train spluttered back and forth several times and then slowly started forward. “North Korean trains usually whistle a lot,” a South Korean transportation official said. 

North Korean middle school students, who attended a ceremony, started to wave their hands, and South Korean passengers responded in kind. The train moved out of Kumgangsan Station at the speed of 10 kilometers per hour, and North Koreans working nearby just looked at the train without reacting in a friendly manner.

Some 50 meters away from the railway on the right side, a paved road appeared as the scenic Mount Geumgang faded from sight. Rice paddies were waiting for rice seedlings to be planted, but no peasant was seen working outside.

Unexpectedly, well wishers were South Korean tourists traveling to the Mount Geumgang resort in a convoy of eight buses. “At this time of the day tourist buses go to the resort,” a South Korean official said.

At 11:30 a.m. the stretch of hills and mountains continued, and the clouds moved quickly against the blue sky, cleansed from the previous day’s rain.

A few Toyota jeeps driven by soldiers, military jeeps and trucks drove parallel with the train and then fell behind. North Korean soldiers were stationed at the checkpoints of major intersections.

Then the track turned sharply, a rare occurrence on South Korean track. The sharp turns came again and again, and a woman peeked outside the window at a nearby village.

The overall atmosphere was friendly, a throwback to a picnic in the 1970s-80s on a slow, squeaking train. Hills and mountains passed by, and splendid pine trees of all kinds of shapes. After awhile the Nam River appeared on the right side of the train. At one village, some 10 residents came out and looked over the communal wall to watch the passing train.

At 11:50 a.m. the train passed Samilpo Station. The painted name on the station was very small, like Kumgangsan Station, and an oversized portrait of Kim Il-sung hung on the front of the station, along with pro-communist and cult propaganda slogans.

The train crossed the river on a bridge restored with steel plates provided by South Korea. Outside the window, North Korean tourist attractions such as Haegumgang and Samilpo were seen a little farther away.

At 11:50 a.m. some passengers pushed up the windows, and the unpolluted air coming through the open windows refreshed them. A group of 10 North Korean soldiers stood guarding a storage house of diesel engine trains built for the railway test run. There was no other train in sight.

The train slowed down at Kamho Station, where North Korean customs officials were stationed. It was 11:55 a.m.

Around 12:00 p.m. four customs officials and two conductors boarded each car of the train. One of them shouted, “We fervently welcome you who have become the first passengers of the train! Now we will start customs clearance procedures.”

Conductors checked the identities of the passengers and digital cameras. They asked a passenger to delete a photo of portraits of Kim Il-sung and Kim Jong-il that had been blurred from the shaking of the camera.

At 12:15 p.m. the conductors suddenly moved to the exit and disembarked. They must have gotten orders to let it pass, as the inspection took longer than expected. The train started to move again right away.

“Now you will see an outpost about 200 meters. It is the Military Demarcation Line,” said Kim Kyong-jung, chief of the inter-Korean railway team at the Ministry of Construction and Transportation.

A sharp whistle blew, and the train picked up speed, double its previous pace. The shaking was palpable, but not enough to affect the bottles on the small table. With the speed increasing, the frequency of the whistle’s call also increased.

In five minutes, the train passed the Northern Limit Line and went into the Demilitarized Zone. At 12:21 p.m., it passed the Military Demarcation Line to roars of applause. The train slowed a bit and the passengers became quiet, awaiting arrival.

At 12:25 p.m., a South Korean tourist observatory appeared, and some 200 tourists on the porch waved their hands eagerly, welcoming the North Korean train. Wide paved roads came into view and the train arrived at Jejin Station five minutes later. Amid the loud sound of a welcoming brass band and the cheering crowd, the train stopped at a South Korean station for the first time in more than half a century.

Trains cross inter-Korean border for first time in over 50 years
Yonhap
5/17/2007

A North Korean train traveling on reconnected track along the east coast of the Korean Peninsula on Thursday crossed the heavily armed border to return to its point of departure after a brief stay here.

At the same time, a South Korean train returned to the South in the west of the Korean Peninsula.

Earlier in the day, the two trains, one carrying 100 South Koreans and the other 50 North Koreans, crossed the Military Demarcation Line (MDL) dividing the two countries for the first time in more than half a century.

“It took more than half a century to cross this short, approximately 20-kilometer distance. We have to prevent anyone from blocking the railways. They were so hard to reconnect,” Kim Yong-sam, North Korea’s railway minister, said in a luncheon speech after arriving here.

In response, South Korean Construction Minister Lee Yong-sup hailed the test run of the cross-border railways, suggesting South and North Korea cooperate in promoting the mutual interest and prosperity of the Korean people.

At 11:30 a.m., Lee, who led the 100-member delegation to North Korea Thursday morning, boarded the North Korean train in Kumgangsan Station near the scenic Mount Geumgang resort for a test run on a 25.6-kilometer track in the eastern section of the peninsula.

At the same time, Kwon Ho-ung, chief councilor of the North Korean Cabinet, who had led the 50-member delegation to the South, boarded the South Korean train at Munsan Station in the western side of the peninsula on a restored 27.3-kilometer track, along with his South Korean counterpart, Lee Jae-joung.

Before the trains departed, South and North Korea held ceremonies to mark the historic event at Kumgangsan and Munsan stations, respectively.

“I hope it will contribute to forming a joint economic community and making balanced development on the Korean Peninsula. A new curtain of peace has been raised on the peninsula,” Lee said in a commemorative speech.

In his speech, Kwon said that North Korea will make every effort to make sure that the “train of unification” runs along a “track” of inter-Korean collaboration, with its emphasis on peace and understanding.

“Right at this moment, however, the challenge from divisive forces inside and outside is continuing. We should not waiver or be derailed from the track of national sovereignty and inter-Korean collaboration,” Kwon said.

The one-time test run came only after North Korea reluctantly agreed to provide military security arrangements last week. The tracks have been set to undergo tests since they were restored in 2003, while a set of parallel roads has been in use since 2005 for South Koreans traveling to the North.

In May 2006, North Korea abruptly called off the scheduled test runs, apparently under pressure from its hard-line military. The cancellation led to the mothballing of an economic accord in which North Korea would receive US$80 million worth of light industry raw materials from the South in return for its natural resources. North Korea’s subsequent missile and nuclear weapons tests further clouded hopes of implementing the agreement.

The reconnection of roads and train lines severed during the 1950-53 Korean War was one of the tangible inter-Korean rapprochement projects agreed upon following the historic summit between then South Korean President Kim Dae-jung and North Korean leader Kim Jong-il in 2000.

South Korea hopes to use the restored railways to help North Korean workers commute to a joint industrial complex in the North Korean border city of Kaesong as well as to transport South Korean tourists to the North’s scenic Mount Geumgang.

The Gyeongui (Seoul-Sinuiju) line cutting across the western section of the border was severed on June 12 in 1951, while the Donghae (East Coast) line crossing the eastern side was cut shortly after the outbreak of the Korean War.

South and North Korea used radio communication between Dorasan Station in the South and Panmun Station in the North for the western rail line, and between the South’s Jejin Station and the North’s Kamho Station for the eastern one. The stations are closest ones to the border on both sides.

In March, the two Koreas agreed to put humanitarian and economic inter-Korean projects back on track just days after North Korea promised to take the first steps toward its nuclear dismantlement in return for energy aid and other concessions from the other five members of the six-party talks.

South and North Korea are still technically at war, as the Korean War ended in an armistice, not a peace treaty.

Korean Train Crossing Seen as Sign of Progress
New York Times

Choe Sang-Hun
5/17/2007

[excerpts]

South Korea has long dreamed of building a trans-Korea railroad that would connect its train network to China and to the Trans-Siberian Railway in the former Soviet Union, creating a so-called Iron Silk Road.

North Korea blocks overland access to Asia, which makes South Koreans “feel as if we live in an island,” the South Korean transportation minister, Lee Yong Sup, said yesterday.

A trans-Korea railroad would offer a faster and cheaper way for South Korea to bring exports that are now shipped by sea to China and Europe. It would also provide a shortcut for Russian oil and other natural resources transported to South Korea. Such a rail system would save South Korea $34 to $50 a ton in shipping costs, said Lim Jae Kyung, a researcher at the Korea Transport Institute.

But before the dream of a trans-Korea rail system comes true, transportation analysts and government officials say, years of confidence-building talks and billions of dollars in investment in North Korea’s decrepit rail system will be needed.

Officials acknowledge that such a dream will not be made real until after North Korea gives up its nuclear weapons and improves its human rights record. Those moves would help build public support in South Korea for large investments across the border and would open the way for international development aid.

South Korean officials say a trans-Korea railroad would invigorate inter-Korean trade, which tripled from $430 million in 2000 to $1.35 billion last year.

It would also bring cash to North Korea, which could collect an estimated $150 million a year in transit fees from trains that pass through its territory, according to some estimates.

But it is unclear whether or when North Korea might agree to regular train service across the border.

Procuring international aid to renovate the rail network and letting trains from one of Asia’s most vibrant economies, carrying exports and tourists, rumble through its isolated territory could threaten the North Korean regime, analysts and others say.

The agreement came after South Korea promised to send North Korea 400,000 tons of rice, as well as $80 million worth of raw materials for shoes, soap and textiles.

South Korea has spent 544.5 billion won, or $589 million, on reconnecting the rail system, including 180 billion won in equipment, tracks and other material loaned to North Korea.

South Korean policy makers have called for patience in working toward reconciliation with the North. They have often been accused by conservative politicians and civic groups of giving in to North Korea’s strategy of extracting economic aid for every step toward reconciliation.

“This is a precious first step for a 1,000-mile journey,” Mr. Lee, the unification minister, said today.

South Korea has seen some tangible results in its overtures to the North in recent years.

The North Korean military cleared mines and moved some of its weapons to make room for the rail system and the Gaesong industrial complex. In addition, South Korean factory managers commute from Seoul to Gaesong using a road that was reconnected in 2004, and South Korean buses regularly take tourists to the Diamond Mountain resort in the North.

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Russia and China seek use of port in North

Wednesday, May 16th, 2007

Joong Ang Daily
Lee Yang-soo and Brian Lee
5/16/2007

With an eye on future transportation infrastructure, both Russia and China are courting North Korea to get in on the development of Najin port, in the far north of the country near the Russian border.

A Foreign Ministry official said yesterday that Russian Railways President Vladimir Yakunin is scheduled to visit North Korea to discuss launching a project aimed at improving and repairing a railroad from Najin to Khasan, just across the border into Russia.

Yakunin told former Prime Minister Han Myeong-sook, who visited Russia last month, that President Vladimir Putin had great interest in the project and Russia was hoping for the active participation of South Korean companies, the official said. The railway official visited Seoul in July last year to discuss the project with South Korean companies. The issue was also discussed in March at a bilateral meeting with Russia on economic cooperation.

A government official said that Russia wants to use Najin port as a logistics hub, but is also intending to develop the port into a base for future development of oil and natural gas in Siberia. The ultimate goal would be to connect the trans-Siberian railway with an inter-Korean railway system.

Beijing also has its eye on the North Korean port, which it envisions as part of its grand design to build a transport network that stretches from the Indian Ocean to the North Pacific.

“Najin Port is near the Jilin area and China’s own ports in the area have already reached their full capacity,” a government official said yesterday.

Beijing has recently notified Pyongyang that it is willing to spend $1 billion to develop port facilities, build railroads connecting the port to China and improve existing infrastructure such as highways, the official said.

In a report published earlier this year, Cho Myung-chul, a researcher at the Korea Institute for International Economic Policy, predicted that China would use investments in the North’s ports and railroads to extend its own infrastructure for export and import purposes. China has made similar investments in Burma and Bangladesh, among others.

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Agency to give the North raw goods

Tuesday, May 15th, 2007

Joong Ang Daily
Lee Young-jong
5/15/2007

With a one-time test run of an inter-Korean railroad set this week, South Korea’s Ministry of Unification said yesterday it will create an organization designed solely to provide $80 million worth of raw materials to North Korea.

The South promised to provide the materials, for light industry, in return for security assurances over the inter-Korean train line.

South Korea hopes the line will be permanent, but North Korea has only agreed to one test run.

The new organization will be jointly operated by related South Korean government agencies, Unification Ministry spokesman Kim Nam-sik said in a briefing yesterday. The agency will also represent South Korea in talks with the North over the joint development of a mine in North Korea.

The government is scheduled today to hold a meeting hosted by Unification Minister Lee Jae-joung to endorse a 2 billion won yearly budget for the organization, Kim said. The money will come from the Inter-Korean Cooperation Fund.

“The fund the government will provide to the organization is a kind of commission for doing state affairs instead of the government,” Kim said.

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Two Koreas agree on train crossing, but just this once

Saturday, May 12th, 2007

Joong Ang Daily
Brian Lee
5/12/2007

After four days of marathon negotiations, the North’s military gave its blessing for a trial run of an inter-Korean railroad system.

At least once.

South Korea failed to get a permanent security assurance from Pyongyang, fearing that North Korea would try to wrangle concessions every time the train passes the world’s most heavily fortified border.

Most recently, Seoul agreed to give the North $80 million in raw materials for light industry following the test run of the train.

After the long negotiations, several issues were left undecided.

In a joint press release issued yesterday, the two Koreas said, “The two sides share the view that preventing military conflicts and creating a joint fishing zone in the Yellow Sea is an issue to be urgently resolved in the course of easing military tensions and establishing peace.”

The test run of the train is scheduled Thursday.

It would be the first in more than half a century, since an armistice ended the Korean War.

Seoul views the train crossings as a crucial building block to reduce tension on the Korean Peninsula and draw the reclusive state of North Korea more out into the open.

South Korea has built two rail crossings, one on the country’s east coast and another about 60 kilometers (40 miles) northwest of Seoul.

A planned test run in May of last year was cancelled at the last minute. Speculation ran high that the North’s military balked due to its own security worries.

The militaries of the two countries, who are still technically at war, agreed to meet again in July.

The two sides agreed to discuss the issue of establishing a joint fishing zone in the Yellow Sea and look into the possibility of allowing North Korean commercial vessels going to and from the North’s Haeju Port, which is located near the Northern Limit Line that serves as a demarcation line in the Yellow Sea, to directly pass through the border.

The two sides also agreed to try to have defense-minister level talks in the future.

The last and only one took place in September of 2000.

Meanwhile, the Unification Ministry said yesterday that delegations from both sides would meet in Kaesong today to finalize the details of the train test run.

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Railway test runs

Saturday, May 12th, 2007

Korea Herald
5/12/2007

South and North Korea have agreed to guarantee security for test runs on cross-border rail connections. The accord will make it possible for trains to resume operations across the Demilitarized Zone after the Korean War stopped the railway service more than five decades ago.

But South Korea may not be 100 percent assured that the test runs will proceed as scheduled, given that North Korean commitments have more often than not proved unreliable. Actually, North Korea withdrew its security guarantee on the eve of the railway test runs that had been scheduled for May 25 last year.

Moreover, the security accord is flawed because it will not apply to commercial operations that will follow the test runs. South and North Korea will have to negotiate enduring rules governing inter-Korea railway transportation in the near future.

At the four-day general-level talks that ended on Friday, the North Korean military withheld a security guarantee for commercial operations for the incomprehensible reason that construction of a southern part of the eastern rail link has yet to be completed. Given that the part in question could be reconnected anytime, the North Korean military no doubt has ulterior motives, including extracting concessions from the South in exchange for a security guarantee.

It goes without saying that North Korea is misguided in refusing to guarantee security for commercial operations. It is North Korea that stands to benefit much more from the rail connections.

But South Korea should also be held accountable for the North’s irresponsible behavior. It made the wrong decision when it decided to provide the North with $80 million worth of intermediate materials for the manufacture of necessities and 400,000 tons of rice in exchange for railway test runs.

When negotiating the terms of commercial operations next time, South Korea will have to avoid making similar mistakes. It has no reason to accept being played for a fool when offering a helping hand.

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Koreas exchange security guarantees for rail test

Saturday, May 12th, 2007

Korea Herald
5/12/2007

South and North Korea agreed yesterday to provide military security guarantees for the upcoming railway test runs across their border, and to take long-term measures to ease tension on the peninsula.

The deal, struck during unusually lengthy military talks, marked a significant breakthrough in Seoul’s seven-year-old policy of engagement with Pyongyang. Despite growing economic cooperation and other exchanges between the two Koreas, their armed forces remained locked in a tense stand-off.

“The two sides have shared the view that preventing military conflict and creating a joint fishing zone in the West Sea is an issue to be urgently resolved in the course of easing military tension and establishing peace,” read a joint press release issued after an unscheduled fourth-day session of the talks held in the truce village of Panmunjom.

South and North Korea are at odds over their western sea border.

The United Nations forces unilaterally drew the Northern Limit Line (NLL) in the West Sea at the end of the 1950-53 Korean War, but the North has called for a shift of the line southward.

North Korean fishing vessels and naval patrol ships often cross the line illegally. Two major deadly naval clashes occurred in 1999 and 2002.

The North also demanded that commercial vessels going to and from the North’s Haeju port near the NLL be able to pass through the sea border. Currently, North Korean ships have to take a long route through international waters to avoid the line.

The Koreas have agreed to discuss the issue after creating mutual military trust, according to the release signed by two-star generals.

The agreement on principle, however, lacks a concrete plan for taking the trust-building steps, with the two sides only saying they will continue related consultations.

The next round of general-grade talks is slated for July, and the specific date and venue will be fixed later, according to the release.

The two Koreas also adopted a separate statement of agreement on supporting the test runs of trains to run on two reconnected cross-border tracks on May 17. It will be a tentative step for the event, however.

South Korea called for a long-standing agreement to allow the safe passage of trains and vehicles across the heavily-armed Demilitarized Zone, but the North rejected the offer.

“The two sides have decided to discuss the issue of adopting a statement of agreement on military security for the operations of railways and roads,” the joint press release read.

The inter-Korean railroad was severed in 1951 and has been reconnected as a result of the historic summit between the leaders of the two Koreas in 2000.

During the test runs on May 17, a train carrying 100 people is scheduled to run from Munsan to Kaesong on a 27.3-kilometer line of the western section, and from Kumgang and Jejin on a 25.5-kilometer line of the eastern section – all across the Military Demarcation Line dividing the two countries.

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