OREANDA-NEWS. On April 25, 2008 Russian Railways President Vladimir Yakunin and Kim Yong Sam of North Korea’s Minister of Railways have signed a cooperation agreement under which the two parties agreed jointly to implement the pilot project Khasan to Rajin, which includes reconstructing the stretch of railway between Tumangan and Rajin and building a container terminal at the port of Rajin, as well as the subsequent operation of this infrastructure, reported the press-centre of Russian Railways.

In order to implement the project, as part of the general agreement, a contract was signed under which Russian Railways Trading House (from the Russian side) and the port of Rajin (from the Korean side) will set up a joint venture to attract investment to the project, as well as contractors to undertake the reconstruction of the stretch between Tumangan and Rajin (52 km) and build the container terminal at Rajin.

The joint venture was set up for a term of 49 years, with the Russian side holding 70% of the registered capital and North Korea the remaining 30%.