Economics

16:10, 24.09.2008 | Primorye Territory

Reconstruction of the railway section between North Korea’s port Rajin and Russia’s station Khasan in the Primorye territory will be launched on October 3, press secretary of the Vladivostok branch of the Far Eastern Railway Alexander Artamonov told
on Tuesday.

The Russian and North Korean leadership in 2001 signed the Moscow declaration reflecting the sides’ agreement to create a railway transport corridor linking the North and South of the Korean Peninsula with Russia and Europe. In April 2008, President of OAO RZD (Russian Railways) company Vladimir Yakunin and North Korean Railways Minister Kim Yong-sam signed in Moscow a cooperation agreement. The sides agreed to jointly implement the Khasan-Rajin pilot project that includes reconstruction of the railway section Khasan (Tumangang)-Rajin, construction of a container terminal at Rajin port, as well as the following exploitation of this infrastructure. With this end in view the sides agreed to set up a joint venture.

The Company’s property was formed by transferring to the charter capital of Russian Railways the balance sheet assets of 987 state-owned organisations from federal rail transport.

The Charter capital is 1,535.7 billion roubles consisting of 1,535,700,000 ordinary bearer shares with a nominal value of 1,000 roubles each. The Russian Federation is the sole shareholder of Russian Railways.

A delegation of Russian Railways visited Pyongyang on March 11-15, 2008, during which the two sides discussed the technical issues related to the establishment of the joint venture and agreed to implement the projects as soon as possible.

-Itar-Tass