October 07, 2008

RZD and North Korean Railways to implement pilot project Khasan-Rajin

Itar-Tass quoted RZD corporative communications department reported that Mr Vladimir Yakunin president of the Russian Railways Company and Mr Kim Yong Sam North Korean Minister of Railways signed a cooperation agreement recently.

Prime-Tass reported that the sides agreed to implement a joint railway pilot project Khasan-Rajin, which envisages the reconstruction of the Tumangan-Rajin railway line, the construction of a container terminal at the North Korean port Rajin and further operation of this infrastructure.

Under the agreement the RZD Company and the port Rajin will set up a joint venture company. This joint venture will attract investments for the funding of the project and will attract subcontractors for the designing and the reconstruction of the 52 kilometer long Tumangan-Rajin railway line and the construction of a container terminal at the port Rajin.

The joint venture company was established for 49 years with Russia possessing 70% of the stock and North Korea 30%.