Russian Railways Logistics is to provide a complete range of services to transport coal through the port of Rajin of North Korea to the Asia-Pacific region.

The move is expected to lower the load from the ports of the Russian Far East, and will attract additional freight to the Trans-Siberian corridor.

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The services being offered under the partnership of RasonKonTrans include waggon providing, coal transportation, cargo handling in the port of Rajin, and shipping based on CIF to the ports of China Shanghai, Lyanyungan and Guangzhou.

RasonKonTrans is a joint venture between Russian Railways Holding (RZD) and the Ministry of Railways of the Democratic People’s Republic of Korea.

"The move is expected to lower the load from the ports of the Russian Far East, and will attract additional freight to the Trans-Siberian corridor."

The launch of the new route by RZD will see a rise in the export of mining and metals from Russian companies, as the cargo volume is higher than the current processing capacity of the ports of the Russian Far East.

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Due to a shortage of oil and gas, coal remains an important energy source in China. The main importers of coal and target customers for the North Korea transit are the country’s southern and south-east coastal provinces.

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RZD Logistics CEO Pavel Sokolov said that the rapid economic growth of these regions initiated the growing electricity demand, which led to higher demand for coal – the main source of power.

The cost of imported coal for China is lower than in the domestic market. Launching the new supply route from Russia will attract customers in the south and the south-east regions of the country. A series of talks with Chinese companies have already been carried out, Sokolov added.