Russia and North Korea co-operate on railway

By Richard High29 April 2008

Vladimir Yakunin, president of Russian railway operator RZD, and North Korea's Minister of Railways, Kim Yong Sam, have signed a "co-operation agreement", according to Russian state news agency Itar-Tass.

Under the agreement the two sides have agreed to implement a joint railway pilot project between Khasan, the only Russian settlement on the border with North Korea, and the Rajin-Sonbong Economic Special Zone in North Korea.

The project will also see the reconstruction of the 52 km-long Tumangan to Rajin railway, and construction of a container terminal at Rajin Port.

Under the agreement RZD and Rajin Port will set up a joint venture company in an effort to attract bidders for the project. The joint venture company will operate for 49 years with RZD holding 70% of the stock and North Korea 30%.

No start dates or costs have yet been given.

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