Comments on: “Subsidized empty freight trains” or “How not to pursue economic development” http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/ News and analysis of the North Korean economy Thu, 18 Mar 2010 00:22:31 +0000 http://wordpress.org/?v=2.3.2 By: North Korean Economy Watch » Blog Archive » Last call at Kaesong… http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-122957 North Korean Economy Watch » Blog Archive » Last call at Kaesong… Tue, 02 Dec 2008 00:40:42 +0000 http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-122957 [...] was the last day of the Kaesong day tours (210 tourists made the trip) and the last day the “train to nowhere” made its inter-Koran [...] […] was the last day of the Kaesong day tours (210 tourists made the trip) and the last day the “train to nowhere” made its inter-Koran […]

]]> By: North Korean Economy Watch » Blog Archive » Little sunshine on this cloudy day http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-122525 North Korean Economy Watch » Blog Archive » Little sunshine on this cloudy day Tue, 25 Nov 2008 01:05:28 +0000 http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-122525 [...] The North Koreans will end “the train to nowhere” (c) NKeconWatch. This is puzzling because of all the inter-Korean projects, this one is the [...] […] The North Koreans will end “the train to nowhere” (c) NKeconWatch. This is puzzling because of all the inter-Korean projects, this one is the […]

]]> By: ROK Drop Weekly Linklets - 26OCT08 http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-118751 ROK Drop Weekly Linklets - 26OCT08 Sun, 26 Oct 2008 18:55:11 +0000 http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-118751 [...] Great read on how South Korea is subsidizing empty trains to North Korea. [...] […] Great read on how South Korea is subsidizing empty trains to North Korea. […]

]]> By: Gag Halfrunt http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-118199 Gag Halfrunt Sat, 25 Oct 2008 11:09:43 +0000 http://www.nkeconwatch.com/2008/10/24/subsidized-empty-freight-trains-or-how-not-to-pursue-economic-development/#comment-118199 Korail's managers - and the South Korean government - are probably worried that, given the delicate nature of inter-Korean relations, if they suspend the service now they will not be able to resume it in future if output from Kaesong increases enough to make it commercially viable. Indeed, they might well fear that the North Korean authorities would regard closing the service as a political statement on the part of the South rather than a purely commercial decision. It may be economically unsound, but it looks as if the only way to maintain the possibility of running cross-border trains is to run them, empty if necessary. Use it or lose it, as the Americans say. (Earlier this year, IIRC, it emerged that British Airways was running ghost planes simply to hold on to spare 'slots' at Heathrow. BA didn't need the slots for its current timetable, but they were so valuable that it was prepared to run empty planes to keep the slots in case demand picked up again.) Korail’s managers - and the South Korean government - are probably worried that, given the delicate nature of inter-Korean relations, if they suspend the service now they will not be able to resume it in future if output from Kaesong increases enough to make it commercially viable. Indeed, they might well fear that the North Korean authorities would regard closing the service as a political statement on the part of the South rather than a purely commercial decision. It may be economically unsound, but it looks as if the only way to maintain the possibility of running cross-border trains is to run them, empty if necessary. Use it or lose it, as the Americans say.

(Earlier this year, IIRC, it emerged that British Airways was running ghost planes simply to hold on to spare ’slots’ at Heathrow. BA didn’t need the slots for its current timetable, but they were so valuable that it was prepared to run empty planes to keep the slots in case demand picked up again.)

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