Pyongyang Growing Hopes for Inter-Korean Railroad
By Kim Tae-jong
Staff Reporter
On May 17, trains from the two Koreas crossed the heavily armed border for the first time in 56 years since the Korean War. It was only a test run but was considered a stepping-stone toward the reunification.
Experts also expected that the historical symbolic gesture become a reality. They believed a regular railway service between the two divided states would help facilitate inter-Korean economic cooperation.
``There is no doubt that the rail-reconnection of the Trans-Korean Railway (TKR) will open a new era and possibilities,'' Na Hee-seung, principal researcher at the Korea Railroad Research Institute said.
The reconnection should aim at reviving the North Korean economy and integrating it with that of the South, which will also lead to the promotion of economic cooperation in Northeast Asia, he said.
Once TKR is fully restored, the restoration project can be even broaden into a connection with the Trans-Siberian Railway (TSR) and stretch to even Europe and allow the creation of an ``Iron Silk Road,'' linking Asia and Europe, which will open new economic horizons in Northeast Asia.
If TKR is connected with Trans-Continental Railway (TCR) system, transportation costs and transit time to Europe can be saved compared with sea cargo and it will also bring a significant change to the logistics system in Northeast Asia.
Now it takes 26 days to sail from Busan to Western Europe, traveling a total of 19,200 kilometers, but through the cross-continent railway, it would only take 18 days to travel a total of 12,400 kilometers.
For the huge project, however, there seems to be many issues to be discussed and tackled between the two Koreas and other neighboring countries.
``The first phase is the construction of infrastructure in North Korea and modernization of its railroad system and the project should begin at key points in neighboring countries sharing borders with the construction of basic facilities,'' he said.
Russia has emerged as one of the most active participants in the project apart from the two Koreas due to numerous benefits.
Russia expects to improve competitiveness of the TSR and enjoy an invigorated Eurasian distribution network. Russia will also expect an extended political and economic influence in Northeast Asia as a major power in energy and transportation.
``The repair and improvement of Najin-Khasan railway and the opening of Najin-Busan coastal route could make a model business for the first phase of the TKR-TSR connection for transporting containers via TSR to Europe,'' he said.
Last February, the Russo-North Korean Joint Economic Commission talked about the debt exemption totaling $8 billion that North Korea owed to Russia, a green light for the TKR-TSR connection.
Transporting containers via TSR, after they are carried on board a regular liner from Busan to Najin, will make a promising business. Once set up, some ten thousand TEUs (twenty-foot equivalent container units) of South Korean origin will take the new route to Europe in a shorter amount of time.
As the project was initiated from the South-North Joint Declaration from the first inter-Korea summit in June 2000, many have high expectation on the second summit in hope that it will produce fruitful agreements on various issues, especially in the railroad area.
``Of course, the leaders of the two countries will not discuss the details about the railroad project, but they can open a huge possibility and nudge working level officials to come up with more practical methods for the business,'' Na said.