[평화가 신경제동력]"North-South rail connection, opportunity to create a global logistics center"

Strategy for the construction of railway infrastructure for the unification of the Korean peninsula railway 1

While the South and North have agreed to connect the railways and roads at the Third Pyongyang Inter-Korean Summit in September, the importance and economic effects of the project are attracting attention.

North Korea and South Korea have decided to build the first button connecting "the broken nation lineage", at the opening ceremony of the connection of the railways of the east coast and the coast west this year.

In addition, a joint regional survey on the connection and upgrading of the Gyeongui and Donghae railways is expected to be completed soon.

◇ "Peninsular Peninsula Railway, traffic innovation, new engine for growth"
The North-South railway and road connection should have a considerable impact, going beyond the historical significance of creating a link between peace and tranquility.

It is expected that this will bring innovation to South Korean traffic, isolated as an island because of the break with North Korea, and will guarantee a new engine of economic growth.

Especially, if the operation of the railway on the Korean Peninsula is carried out via links such as the Donghae Line, the Korean railway will reach North Korea through the Trans-Chinese Railway (TCR) and the Russian Railroad (TSR). .

Taking the Busan train to France and the United Kingdom is no longer a dream, but a base for Korea to become a global logistics hub.

By using the Trans-Siberian railway, logistics costs can be reduced to three-fifths of shipping. This will open the door to a more active trade with China, Russia, Europe and so on with cheap logistics costs.

National companies such as CJ have already realized this effect and started a logistics business in China using the Trans-Siberian railway.

The railway facility is located on the Gyeongui Line (Seoul ~ Kaesong ~ Sariwon ~ Pyongyang ~ Suncheon ~ Shinuiju) from 2030 with 19.21 million tons and the Donghae Line (Sokcho ~ Goseong ~ Wonsan ~ Plateau ~ Hamheung ~ Kimcheong ~) Demand for rail transport is expected to reach 114.16 million tonnes.

Whereas the estimate of rail transport by North Korea is 114.18 million tons per year, the rail freight traffic between North Korea and South Korea, Korea, China, Russia North Korea, China and Russia will be multiplied by three.

◇ "Gyeongui, tourism and minerals for 30 years, 140 billion billion economic effects"
The economic creation effect of inter-Korean rail links, including trade, is enormous.

Lee Jae-hoon, director of the strategic innovation planning team at the Korea Transportation Institute, estimated that Korea could expect an economic impact of up to 140 000 billion won over the next 30 years if the Gyeongui line is connected. 140 trillion won are related to tourism (87.4 trillion won), such as Kaesong and Sinuiju, and 3 trillion won (61 trillion won), which rely heavily on imports such as steel, zinc and anthracite.

If there is provision for the inclusion of the aforementioned expansion of trade and logistics cost reduction, the amount will increase.

Of course, to benefit from such an economic effect, it is necessary to precede the investments necessary for the establishment of the integrated inter-Korean railway network.

It is estimated that the cost of connecting the South-North railway lines such as Gyeongui, Donghae and Gyeongwon will reach about 37.58 billion won based on the unit price of South Korean construction.

If South Korea takes over materials and equipment and North Korea uses its own workforce, its cost will be reduced to 4.3 billion won (906.4 billion won for Gyeongui) , 1,700.6 billion won for Donghae and 1,728.2 billion won for Gyeongwon).

Experts believe that the North-South rail connection can bring us considerable innovation, but that if we do not have a thorough preparation of financing and commercial operations, we can take the lead in countries as powerful as China and China. United States.

"Many powerful countries around North Korea have developed their own railway development strategies and economies, such as China, Russia, Japan and the United States," said Seo Jong-won, head of research infrastructure in Northeast Asia at the Korean Institute of Transportation. North Korea should develop the railway, "he said.

"We need to look closely at the competitiveness of our competitors in terms of business methods and financing that can lead to the development of the North Korean railway," he said.