Officials visit NK for trans-Korea project

By Jun Ji-hye

A South Korean delegation arrived in North Korea’s northern port city of Rajin, Tuesday, to study the feasibility of a joint logistics project to transport coal from Russia and between the two Koreas.

A train departing from Russia’s Vladivostok crossed the border into North Korea carrying a team of 20 government officials and corporate representatives from POSCO, Hyundai Merchant Marine and Korail, according to the Ministry of Unification.

The three countries are now inspecting facilities ahead of the launch of the so-called Rajin-Khasan project, aimed at transporting bituminous coal produced in Western Siberia to South Korean ports through North Korea’s Rajin and Russia’s Khasan.

The facilities have been tested successfully twice ― the South Korean firms previously received 45,000 tons and 140,000 tons of Russian bituminous coal through Khasan and Rajin.

A third test is now underway.

This time, 120,000 tons of bituminous coal will be transported to Rajin along a 54-kilometer railroad linking the North Korean city to Khasan.

Then, ships will transport the coal from Rajin to South Korean port cities.

The ministry noted that 10 containers containing Chinese mineral water will be included in the shipment as well.

The coal will be transported to Pohang in North Gyeongsang Province and Gwangyang in South Jeolla Province, while Busan would be the destination for the water.

Two 45,000-ton bulk carriers and one 10,000-ton container ship will be used, the ministry said. South Korean representatives will stay in the Rajin area until all these ships leave port.

“The representatives will check how well the ships come alongside the pier simultaneously at Rajin’s port as well as its capability of handling containers and making shipments,” a ministry official told reporters on condition of anonymity.

He noted that only bulk carriers had been used during previous trial runs.

Initiated in 2008, Pyongyang and Moscow have been refurbishing a railway between Russia’s Khasan and the North’s Rajin.

The Park Geun-hye government has called the Rajin-Khasan project an integral part of its Eurasia initiative, aimed at connecting roads and railways for the construction of a multi-purpose logistics networks bringing the two continents closer together.

The three South Korean enterprises formed a consortium to take part in the project by purchasing 49 percent of shares from the Russian side, which holds a 70-percent stake. The whole scale of the project is estimated to cost about 380 billion won.

The official said that the consortium will decide on whether to sign a formal contract with a joint company between Pyongyang and Moscow after intergrading and reviewing the results of the three trial runs.

The two sides signed a memorandum of understanding (MOU) in November 2013, and already carried out two trial runs in November last year and April this year to examine the project’s feasibility.

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