Archive for the ‘Sea shipping’ Category

Greece seizes DPRK-made chemical weapons suits

Wednesday, November 16th, 2011

According tot he AFP (2011-11-16):

Greek authorities seized almost 14,000 anti-chemical weapons suits from a North Korean ship possibly headed for Syria but did not disclose the find for nearly two years, diplomats said Wednesday.

The seizure was reported to the UN Security Council, which discussed the monitoring of nuclear sanctions against the isolated North, diplomats said.

The Greek operation was carried out in November 2009 but only reported to the United Nations in September, a diplomat told AFP on condition of anonymity in confirming the number of suits to protect against chemical weapons involved.

“It seems the shipment was headed for Latakia in Syria,” a second diplomat said, noting that the Greek report to the council did not mention Syria.

“There is increasing concern because more and more of the violations before several sanctions committees seem to involve Syria.”

Syria has already been linked to breaches of an arms embargo against Iran.

Both diplomats spoke on condition of anonymity as the report by the chairman of the North Korea sanctions committee, Portugal’s UN Ambassador Jose Filipe Moraes Cabral, was given behind closed doors.

The UN Security Council ordered tough sanctions against North Korea after it staged nuclear weapons tests in 2006 and 2009.

The North pulled out of nuclear talks with China, the United States, Japan, Russia and South Korea in 2009 and efforts to kick start negotiations are struggling, with the United States and its allies saying that North Korea is not serious about disarmament.

In a comment sent on an official Twitter account, a British diplomat said it was “clear that North Korea (is) still violating” Security Council resolutions.

“Strong concerns in council about the ongoing proliferation efforts,” added a German diplomat. Neither mentioned the seizure of the anti-chemical weapons suits.

Additional Information:

1. Here and here are the two UN panel of Experts reports on the DPRK which detail other UN embargo violations.

2. The Security Council this morning extended the mandate of the Panel of Experts helping monitor sanctions on the Democratic People’s Republic of Korea for an additional year, until 12 June 2012.

3. Here are links to embargo violations which I previously posted.

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Seoul – Pyongyang tension metrics

Wednesday, November 16th, 2011

The Korea Times reports that Seoul has ended the government’s practice of sending propoganda flyers into the DPRK:

Seoul has suspended its launches of anti-regime pamphlets into North Korea, a military source said Tuesday in the latest sign of easing tension on the peninsula.

The decision comes nearly a year after the South resumed the controversial launches in retaliation for the North’s deadly shelling of Yeonpyeong Island on Nov. 23 last year. The pamphlets are floated across the border attached to giant helium balloons.

The source, who spoke on condition of anonymity, said the launches have been stopped for “a few months” and that the decision was made in view of the “government’s efforts to improve inter-Korean ties,” Yonhap News Agency reported.

Ending an 11-year moratorium, the government resumed the launches and allowed citizen groups to send their own balloons after the shelling that killed four people.

The North has called loudly for the halting of the act, calling it a “war action.” On several occasions, it threatened to fire on border sites where civilians float the balloons, which typically carry pamphlets information on the outside world, including news of the popular uprisings in the Middle East, as well as DVDs and dollar bills.

The source said the military would continue to broadcast anti-regime messages from giant loudspeakers placed near the border. Those were resumed after a 6-year moratorium in response the North’s sinking of the warship in which 46 sailors were killed.

Tension between the sides have been high since 2008, when the Lee Myung-bak administration, seeking a fundamental change in the Pyongyang’s belligerence, implemented a hard line policy that slashed aid to the North and tied its provision to denuclearization steps.

The icy relations have thawed somewhat since July, when the two Koreas sat down for surprise talks in a bid to resume six-party talks on the North’s denuclearization.

Seoul also replaced its hard-unification minister with Yu Woo-ik, who has gradually expanded inter-Korean exchanges under a more “flexible” approach.

In further sign of warming, Seoul completed its delivery of hepatitis B vaccines intended to reach 1 million children in the North, a unification ministry official said.

Worth $942,300, the vaccines were delivered to the North through international relief agencies in the South in two installments. It coincided with Seoul’s recent decision to deliver $6.94 million worth of medical aid northward through the World Health Organization.

Private sector activists continue to send leaflets.

The Daily NK reports that NLL incursions by DPRK ships have decreased:

New statistics have shown a significant reduction in the number of detected North Korean intrusions across the Northern Limit Line (NLL) this year.

According to the data, ‘Intrusions across the Northern Limit Line in the Past Six Years’, submitted by Song Young Sun to the National Assembly Defense Committee, there have only been 16 intrusions this year to November, representing only 1/6 of the 95 intrusions which occurred last year.

This is also the lowest number of intrusions over the last six years; fewer than 2006 (21), 2007 (28), 2009 (50) and 2010 (95).

Commenting on the data, Song told the committee, “It seems that the military authorities have strengthened their military patrols and the government is improving inter-Korean relations, and so the North seems to be controlling tensions in that area.”

To give a sense of a desire for reduced tensions between  the two Koreas, here is a list of recent stories from my “South Korea” post index:

1. ROK to resume food and medical aid.

2. Seoul to begin Kaesong road repairs.

3. ROK government planning to resume construction and relax sanctions in Kaesong zone

4. South Korea to allow firms to resume Kaesong construction

I wonder if the trend has anything to do with this.

However, there are some recurring serious issues:

1. The Cheonan and Yonphyong 

2. KEDO

3. Kumgang

Read more here:
Seoul halts flying leaflets to N. Korea
Korea Times http://www.koreatimes.co.kr/www/news/nation/2011/11/116_98791.html
Kim Young-jin
2011-11-15

NLL Intrusion Numbers Falling
Daily NK http://www.dailynk.com/english/read.php?cataId=nk00100&num=8413
Park Seong Guk
2011-11-16

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Choson Exchange October trip findings

Monday, November 7th, 2011

From the Choson Exchange web page (November 5):

In October 2011, John Kim, a board director of the Choson Exchange, visited the Rajin-Sonbong Special Economic Zone. The following is a summary of some of his findings based on site visits and talks with senior officials in the SEZ. An longer account of his travels and impressions will be available soon. This information helps elaborate on our report from August.

Rajin Port
The Rajin Port employs 1400 workers. The Chinese have conducted feasibility tests regarding two new piers, but currently the port houses three piers with 9-9.5 meters draft. A 30,000 metric ton coal storage warehouse was built at Pier 1 by the Chinese, who moved 80,000 metric tons through the facility in five shipments from January to September. Pier two, largely dedicated to container shipment, is currently dormant and a Swiss company is currently using Pier 3 to ship manganese and talc out of the region. The Russians also have a 49 year lease agreement signed in 2008.

Oongsang [Ungsang] Port
Oongsang Port exported Russian lumber until 1985, but remains largely quiet now except for the occasional fishing boat. The present draft of 7 meters constricts any major future activity, so the North Koreans hope to bring in over $100M to widen the draft to 9 meters. After Rajin Port activity surpasses capacity there, Oongsang Port will become the next regional hub for drybulk activity.

Sonbong Port
Originally opened in the early 70’s, the draft within the port is 7 meters, but a fully laden Very Large Crude Carrier containing 270,000 metric tons of oil can offload at an offshore facility further out at sea. Two pipes, 63 cm in diameter, run for 9km underground before reaching the storage facility at “Victory Petrochemical”, a simple refinery that was designed to refine crude and send oil products (gasoline, naphtha, jet fuel, diesel and fuel oil) back to the port for export. In addition to this two way flow, fuel oil also arrived sporadically at the port as part of aid packages from 1994 to 2008.

Sonbong Power
This power plant was originally designed to take fuel oil from Victory Petrochemical as feedstock and generate power to feed back to Victory. Since the refinery has been offline, Sonbong Power has at times provided electricity to the region, but with fuel oil prices close to $700/metric ton and current electricity prices at 6.5 eurocents/kwh, the economics of running the plant do not work leaving the 800 workers employed here largely idle.

Victory [Sungri] Oil Refinery
Literally translated as “Victory Chemical Plant”, this refinery was completed in 1973 with a 40,000bbl/day crude distillation unit that typically yields 40~50% residual fuel oil for an average crude feed. Investment into upgrading capacity in the international market has led to an eroding of margins for simple refineries like Victory. Currently the refinery is idle and would need over $500M in investment to become competitive.

Hye Song Trading Company
Mr Kim visited a Sewing Factory owned by Hye Song, which runs 8 such factories employing 2000 workers. Output is recorded for the entire year on a bulletin board at the front entrance of the company. All employees except the handyman were women.

Cell Phone use more prevalent
The number of cell phone users in the DPRK crossed 1 million earlier this year and one official commented that the overwhelming majority of urban households have at least one cell phone. This particular official had 4 phones for a household of 3. Foreigners are allowed to use cell phones on a different network, and users of the domestic and foreign network can not call each other. All usage is prepaid.

Handset Type: Local
Purchase Cost: 1570-2200 RMB
Usage Cost: 250 minutes and 20 text messages, while each additional minute is charged at 60 NKW (about .1 RMB/min)

Handset Type: Foreigner
Purchase Cost: 1800-2400 RMB
Usage Cost: Does not include any free minutes and are charged at 2RMB/min

Banking System has room for growth
There are two banks in Rason, the Central Bank, which is focused on domestic transactions, and the Golden Triangle Bank, which is focused on foreign currency transactions. Transactions for goods and services are conducted almost entirely in cash, usually in RMB or NKW. Mechanisms for savings are credit have room for development. As banks take a fee to deposit and withdraw cash, merchants prefer to hold money in cash (usually RMB). Credit is also available almost exclusively through friends or family.

Bottlenecks
A number of issues require solving if Rason is serious about attracting large scale foreign investment. Among these are reliable access to travel visas, reasonable communications costs with the outside world, a more mature banking system with savings and credit mechanisms and favorable tax treatment with a consistent legal framework. The mere fact that Rason is experimenting with market reform is encouraging, and Mr Kim is optimistic about economic development in the region and the nation as a whole.

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DPRK commercial ship sinks off waters of Qingdao

Tuesday, November 1st, 2011

UPDATE 1 (2011-11-4): 3 DPRK sailors dead, 8 still missing after ship sinks off east China coast (Xinhua):

The body of a missing DPRK (Democratic People’s Republic of Korea) sailor was found Friday, bringing the death toll from the Oct. 28 sinking of a cargo ship off the coast of China to three, with rescuers continuing to search for eight missing sailors, according to Chinese maritime officials.

The Panama-flagged Oriental Sunrise sank with 19 crew members aboard following a collision with the Panama-flagged cargo ship Hamburg Bridge at 7:35 p.m. off the coast of east China’s city of Qingdao in Shandong Province.

The first sailor to perish in the incident died after being rescued, as he was heavily injured. The body of another sailor was retrieved on Oct. 31. Eight of the other sailors have been rescued and rescue workers are still searching for the remaining missing, according to officials from the Qingdao Maritime Safety Administration.

Salvage operations for the sunken ship are also under way, the officials said.

All of the crew members are from the DPRK, according to the Qingdao Frontier Inspection Station.

ORIGINAL POST (2011-11-1): According to the Daily NK:

The body of a North Korean crew member who went missing following the collision of two cargo ships in the waters off Qingdao, China last Friday was found yesterday morning, according to China’s Xinhua News Agency.

The two freighters, both flying Panamanian flags, collided on the 28th at around 7:35 in the evening, resulting in the sinking of the 2750-ton ‘Oriental Sunrise’. The next morning, the sunken ship’s mast was visible above the waterline.

Nine of the nineteen North Korean crew members on board the ship were rescued at the time, while ten were registered missing. One of the rescued nine later passed away, two are still in hospital and the remaining six are being put up at a local hotel.

Search-and-rescue units dispatched from Qingdao have not been able to locate the other missing crew members, and the situation now looks bleak.

Meanwhile, the other vessel, the 336m ‘Hamburg Bridge’, is now under investigation at anchor in waters near where the accident took place. There is also an oil slick of 200-300m in length and 10m in breadth at the scene of the collision.

The exact cause of the incident has yet to be established.

According to Xinhua:

Nine sailors are still missing while two have been confirmed dead after their cargo ship sank Friday, said local maritime officials Tuesday.

The Panama-flagged Oriental Sunrise sank following a collision with another Panama-flagged cargo ship Hamburg Bridge at 7:35 p.m. in the sea area near Qingdao, Shandong Province.

The death toll rose to two as a sailor’s body was found on Monday, said officials with Qingdao Maritime Safety Administration.

Nine of the total 19 crew members aboard had been rescued, but one of the three injured died after treatment failed. The rescuers will continue to search for the missing for three more days, they said.

All the 19 crew members were nationals of the Democratic People’s Republic of Korea, according to Qingdao Frontier Inspection Station.

See previous posts related to the DPRK’s shipping industry and infrastructure here.

Read the full stories here:
2 Dead, 9 Missing in Collision at Sea
Daily NK
Tang Hwa-Kwee
2011-11-1

DPRK sailors still missing, two dead, after ship sinks off E China coast
Xinhua
2011-11-1

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North Korea Encourages Investment in Rajin-Sonbong (Rason) Economic and Trade Zone

Friday, September 16th, 2011

Institute for Far Eastern Studies (IFES)
2011-9-14

At the seventh China Jilin and Northeast Asia Investment and Trade Expo (NEASIAEXPO), the North Korean delegation actively promoted the Rajin-Sonbong (Rajin) Economic and Trade Zone to attract investment.

During the expo, the DPRK’s Ministry of Trade and China’s Ministry of Commerce and People’s Government of Jilin Province co-sponsored the “(North) Korean Business Day and China-DPRK Trade and Investment Session” at the Changchun International Conference and Exhibition Center on September 7. Hwang Chol-nam, the vice mayor of Rason City, briefed the attendees on the current situation, advantages, and special benefits of his city.

According to Hwang, “The spacious 470 square-kilometer Rason Economic and Trade Zone is one of the largest economic trade zones,” and advertised the geographic and economic advantages of Rason as the “transportation hub of Northeast Asia that connects China and Russia via Tumen River and with Japan across the East Sea.”

He also introduced the three ports in the region. “Rajin Port is equipped with the annual loading capacity of 3 million ton and Sonbong Harbor is able to transport 2 to 3 million ton of oil while Ungsang Harbor is able to handle up to 600,000 cubic-meter of lumber annually.” He also boasted the ports to be deep enough where it does not freeze during the winter.

Rason was also introduced to have received the “special city” designation in 2010 and will grow to have a population of one million. The recently amended “Law on the Rason Economic and Trade Zone” was revised and supplement with over 50 articles.

Hwang also elaborated on the eight preferential policies providing special tax benefits to foreign investors. He asserted, “The government of North Korea will guarantee the investment of the foreign investors by not nationalizing or demanding requisitions. For inevitable cases where such demands occur, proper compensation will be provided.”

The income tax is also at 14 percent, which is 11 percent lower than other areas in North Korea. For companies with business plans over ten years, foreign capital companies will receive three years of tax-free benefit starting from the profit earning year and two years thereon after will receive 50 percent tax-free benefits. According to Hwang, over 100 foreign companies and offices are operating businesses currently in the special economic zone.

He also announced that the current highway construction project connecting Rajin with Wonjung is expected to be completed in October, and that the Tumen-Rajin port railway system is to be upgraded to a broad gauge railway next month.

Specifically, Russian Railways reached an agreement with North Korea to repair the Hasan-Rajin Railway and improve the Rajin port facilities, especially focusing on Pier 3. The plans include upgrading Rajin as a container harbor to be capable of transporting twenty-foot equivalent units annually. Russia and the DPRK have already conducted measurement and geological surveys and reached the process design phase.

However, Seo Gil-bok, the DPRK’s vice minister of commerce, stated in a speech that North Korea would “actively work hard to make the Rason region a successful collaboration between the DPRK and China,” saying further that they would “pull out all the stops to realize the goals agreed by the best leaders from both nations.”

Many foreign media and correspondents were present at the event to cover the “Korean Business Day.” At the event, North Korea actively promoted the Rason Economic and Trade Zone by also presenting a promotional video of the zone.

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Road to Rason (38 North)

Tuesday, August 30th, 2011

38 North
Andray Abrahamian
2011-8-29

A bus bumps and bruises its way along the unpaved road, carrying would-be investors to Rason’s First Rason International Trade Exhibition which ran from August 21-25, 2011, in Sonbong. The windows are open, until a crimson humvee barrels past, its powerful suspension dancing on the road, leaving behind a plume of beige dust. The bus windows snap shut, the still air quickly gets hot and more than one of the passengers wishes we were Chinese high-rollers, being whisked to the Emperor Casino and Hotel, which sits beautifully on Korea’s East Sea, overlooking Bipa Island and flanked by lush green mountains and crystal waters.

The passengers of the humvee-part of the casino’s fleet-will long be checked in and gambling their fortunes away by the time we complete our two and a half hour journey. However, it won’t always be this way. Rason’s 50km road to the border is finally being upgraded. Indeed, the 2.5 hour journey took 3.5 hours in June. Since then, the road has been widened, the first stage of the construction plan, allowing for traffic to flow both directions more easily and smaller passenger vehicles to overtake the more cumbersome truckers who ply the road.

Its construction is an important sign in the development of the Rason Special Economic Zone. Rason, an amalgamation of the names of the area’s two biggest cities, Rajin and Sonbong, could theoretically be a vibrant hub for both logistics and manufacturing. It is located in the far Northeast of the Democratic People’s Republic of Korea, bordering Russia and China. It has abundant, cheap labor and the region’s northernmost ice-free port. It has been a legal entity since the early 1991, but has struggled to reach its potential in the face of ambivalence from Pyongyang and difficult geopolitical circumstances.

Local administrators have bold plans for this experiment in economic opening-up and to develop as the Rason Municipal People’s Committee has imagined, an efficient road link with China’s Northeastern provinces is vital. For about a decade, improvements to the road have been “under discussion” and “coming soon,” but it is now undeniably underway. Work began in May of this year…READ MORE HERE

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DPRK seeking Myanmar rice deal

Wednesday, August 10th, 2011

According to Reuters:

North Korean trade officials visited Myanmar this week to discuss a possible deal to import Burmese rice to ease major food shortages at home, a government official said on Wednesday.

A meeting was held on Tuesday in the country’s biggest city, Yangon, but the terms of the agreement and how North Korea planned to pay for the rice were not known, the official told Reuters, requesting anonymity.

A North Korea-flagged cargo ship named Tumangang has been docked in the port city since Monday. Witnesses and a Reuters photographer said the vessel appeared empty and no cargo was seen being loaded or unloaded.

Myanmar was once the world’s biggest rice exporter and has shipped 450,000 tonnes of the grain so far this year, up from 440,000 tonnes for the whole of 2010. It exported 1.1 million tonnes in 2009, mostly to markets in Africa and the Middle East.

The Burmese official said the North Koreans who visited Yangon on Tuesday dealt directly with the military-owned Myanma Economic Holding Ltd (MEHL), one of the country’s biggest firms. MEHL enjoys a monopoly of many of the country’s most lucrative import and export produce.

A senior member of from the Myanmar Chambers of Federation of Commerce and Industry said it was likely North Korea would try to import more than just rice, noting that it previously bought Burmese rubber.

Ties between the two reclusive countries were restored in 2007 after a 24-year freeze that followed the failed assassination attempt by North Korea agents on then South Korean President Chun Doo-hwan during a visit to Myanmar.

The revived ties have worried the United States, which believes Myanmar’s military has sought to develop its own nuclear weapons technology using North Korean expertise.

The DPRK recently engaged Cambodia for a barter food deal.

Here is a compendium of stories related to the DPRK’s alleged food shortage this year.

Read the full story here:
North Korea seeking rice deal with Myanmar
Reuters
Aung Hla Tun
2011-8-10

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Mangyongbong 92 to be put to use in Rason for tourism

Sunday, August 7th, 2011

 

Pictured above: (L) Mangyongbong-92 in the Wonsan Harbor. (R)  American Budweiser Beer and dried fish served on the Mangyongbong-92

UPDATE 3 (2013-2-26): The Singaporean ship,  Royale Star, has been delivered to Rajin to handle tourist cruises. According to Google Earth imagery (2012-9-21), the Mangyongbong-92 has been returned to its primary port in Wonsan.

UPDATE 2 (2011-9-3): The Telegraph and ITN (UK) put together a humorous take on the cruise here.

UPDATE 1  (2011-8-31): According to the Associated Press:

The maiden voyage — a trial run — arrived Wednesday, carrying dozens of Chinese travel agents, international media and North Korean officials.

About 500 North Koreans lined up with military precision at the Rason port for a red carpet send-off Tuesday, waving small flags and plastic flowers while revolutionary marches such as “Marshal Rides a White Horse” blared over the loudspeakers. Streamers swirled and balloons spiraled skyward.

The Mangyongbong, a refurbished Japanese-built cargo ship with rusty portholes and musty cabins, was used for the 21-hour overnight cruise tracing the length of North Korea’s east coast. Some passengers slept on wooden bunkbeds while others were assigned mattresses on the floor. Simple meals were served cafeteria-style on metal trays.

A plaque on board commemorated a 1972 tour of the boat by North Korea’s founder, late President Kim Il Sung, and bright red posters emblazoned with his sayings decorated the walls.

Park promised a “more luxurious” ship capable of carrying up to 900 passengers, perhaps next year. He said the goal is to bring as many as 4,000 visitors a day from Rason to Mount Kumgang during the peak summer season, up from some 500 per week now.

“People from any country — Jamaica, Japan, Singapore, people from various countries — can come to Rason and don’t require a visa,” said Rason’s vice mayor, Hwang Chol Nam. “That’s the reality.”

But other restrictions remain. Hwang said visitors must book with approved travel agents and remain in their guides’ company throughout. Mobile phones must be left behind in China.

It remains to be seen how many Chinese tourists will be interested in the new tours. With incomes rising, Chinese are traveling abroad in rising numbers, thronging tour groups to Europe, Thailand, Japan and South Korea, with a small but growing number making the short trip to neighboring North Korea.

A rush of American visitors is unlikely. A long-standing U.S. State Department travel warning says North Korea strictly monitors visitors and harshly punishes law-breakers and reminds Americans that the two countries do not have diplomatic relations.

A senior South Korean official said North Korea would have trouble drawing investors and tourists after the way the North dealt with South Korean businesses.

South Korea’s Unification Ministry plans to send a letter to foreign embassies asking them not to cooperate with any new Diamond Mountain tours offered by North Korea, said the official, who spoke on condition that his name was not used.

North Korea’s latest moves are likely to upset Hyundai — but that might be the strategy of Pyongyang officials riding out conservative South Korean President Lee Myung-bak’s leadership, which ends next year, said Yoon Deok-ryong, an economist at the Korea Institute for International Economic Policy in Seoul.

“If they bring potential investors into the Mount Kumgang area, Hyundai would be upset and try to mobilize possible supporters in Parliament so the next government in South Korea will improve inter-Korean relations,” he said. “That is I think the design of the North Korean government.”

Wang Zhijun, a Chinese hotel manager from Jilin province who joined the trip free of charge, said it won’t be hard to sell the cruise to tourists in his region, which has a large ethnic Korean population and lacks coastline of its own.

But, he said, the price would have to stay low, suggesting around 2000 yuan (US$310) per passenger for an all-inclusive, five-day trip.

“It ought to be very popular. There are a lot of tourists already coming across to Rason,” Wang said. “People from China’s northeast would really like this kind of trip because it’s a cruise. You can enjoy the sea.”

The AFP also reported from the bosom of the Mangyongbong:

It has karaoke and fresh coffee, but the bathrooms on the lower decks are out of water and some guests sleep on the floor. Welcome aboard North Korea’s first cruise ship.

Keen to boost tourism and earn much-needed cash, authorities in the impoverished nation have decided to launch a cruise tour from the rundown northeastern port city of Rajin to the scenic resort of Mount Kumgang.

In a highly unusual move, the reclusive regime invited more than 120 journalists and Chinese tour operators on board the newly-renovated, 39-year-old Man Gyong Bong ship for a trial run of the 21-hour journey.

The vessel left one of Rajin’s ageing piers on Tuesday to the sound of rousing music, as hundreds of students and workers holding colourful flowers stood in line and clapped in unison.

“The boat was only renovated one week ago,” said Hwang Chol Nam, vice mayor of the Rason special economic zone, as he sat on the top deck at a table filled with bottles of North Korean beer, a large plate of fruit, and egg and seafood dishes.

“But it has already made the trip to Mount Kumgang and back. I told people to test the ship to make sure it was safe,” said the 48-year-old, dressed in a crisp suit adorned with a red pin sporting late leader Kim Il-Sung’s portrait.

The project is the brainchild of North Korea’s Taepung International Investment Group and the government of Rason, a triangular coastal area in the northeast that encompasses Rajin and Sonbong cities, and borders China and Russia.

Set up as a special economic zone in 1991 to attract investment to North Korea, it never took off due to poor infrastructure, chronic power shortages and a lack of confidence in the reclusive regime.

Now though, authorities are trying to revive the area as the North’s economy falters under the weight of international sanctions imposed over the regime’s pursuit of ballistic missiles and atomic weapons.

The country is desperately poor after decades of isolation and bungled economic policies, and is grappling with persistent food shortages.

In Rason, Hwang said authorities had decided to focus on three areas of growth — cargo trade, seafood processing and tourism.

North Korea has only been open to Western tourists since 1987 and remains tightly controlled, but more destinations are gradually opening up to tour groups keen to see the country for themselves.

Mount Kumgang, though, is at the heart of a political dispute between North and South Korea after a tourist from the South was shot dead by a North Korean soldier in 2008.

And Rason, where the cruise begins, is a poor area. The tours are tightly monitored, and the only brief contact with locals is with guides, tourist shop owners and hotel employees.

Visitors can expect only brief glimpses of everyday life through the windows of tour buses, as locals — many dressed in monochrome clothing — cycle past or drive the occasional car in otherwise quiet streets.

Small apartment blocks, many of them run down, are interspersed with monuments to the glory of the country’s leaders.

A portrait of current leader Kim Jong-Il and his late father Kim Il-Sung greets visitors as they walk through the vast lobby of the large, white hotel in Rajin.

“The book is a silent teacher and a companion to life,” reads a quotation from the late Kim, hung over glass cases full of books about North Korea, with titles like “The Great Man Kim Jong-Il” and “Korea — a trailblazer.”

The rooms are spartan but clean. But there is no Internet connection anywhere in the area, and the phone lines are unreliable and expensive. Foreign mobile phones are confiscated by tour guides as travellers enter the country.

Hwang said the government in Rason was trying to address communication problems and had signed a 26-year exclusive agreement with a Thai firm to set up Internet in the area, which he hoped would be running in September.

He acknowledged, however, that non-business related websites would likely be blocked, with the media tightly controlled in North Korea.

Many of Rason’s tourists come from neighbouring China. The area sees an average of 150 travellers from China every day during the summer peak season.

One Chinese national from the southeastern province of Fujian who gave only his surname, Li, said he had come to North Korea after a business meeting on the Chinese side of the border.

“We’ve come here mainly to see what changes there have been compared to our country… I like to go to places I’ve never been to before,” he said, standing in front of a huge portrait of Kim Il-Sung.

Simon Cockerell, managing director of Koryo Group, a Beijing-based firm that specialises in tours to North Korea, conceded that Rason may not be everyone’s idea of a holiday, but said its attraction lay in the unknown.

“A lot of people like going to obscure places. And this is the most obscure part of a very obscure country in tourism terms — the least visited part of the least visited country,” he said.

Back on the boat, Chinese tour operators sang karaoke in a dining hall decked out with North Korean flags as a waitress made fresh coffee, while guests drank beer and ate dried fish at plastic tables up on deck.

Inside, some cabins were decked out with bunk beds, while others just had mattresses laid out on the floor. The better rooms had tables, chairs and private washrooms.

Water in bathrooms on the vessel — used as a ferry between North Korea and Japan until 1992 when it started shipping cargo — was unreliable and when available, was brown.

But Park Chol Su, vice president of Taepung, said he had big plans for the tour if it attracted enough visitors.

He wants to invite more than 100 tourist agencies from Europe in October to sample the same trip, in a bid to attract travellers from further afield.

Authorities have promised no visas will be needed to go on the cruise and, if all goes to plan, the ship will be upgraded to a more comfortable one.

“Next year, we aim to get a bigger, nicer boat that can accommodate 1,000 people. We’d rent that from another country in Southeast Asia,” he said.

Some great photos of the trip are here.

A timeline of Kumgang stories from the shooting until today can be found here.

Read the full story here:
North Korea starts group tours from China to mountain resort formerly operated with South
Associated Press
2011-8-31

ORIGINAL POST (2011-9-7): The Mangyongbong-92 is going to be used for tourism. According to Yonhap:

North Korea appears likely to use a ferry to try to attract foreign tourists, a source familiar with the issue said Friday, in what could be an attempt to earn much-needed hard currency.

For decades, the Mankyongbong-92 served as the only shuttle between North Korea and Japan, which have no diplomatic relations, and was mostly used by pro-North Korean residents in Japan.

The 9,700-ton ship was later used to transport cargoes before Tokyo blocked its entry as part of economic sanctions over Pyongyang’s missile and nuclear tests in 2006.

The ferry has also been suspected of being used for trafficking drugs, counterfeit money and other contraband goods.

North Korea is now preparing to use the vessel as a cruise ship for Chinese and other foreign businessmen during an upcoming international fair in Rason, the country’s special economic zone near China and Russia, the source said.

The North plans to use the ship to take the businessmen on a sightseeing trip in waters off the economic zone at the end of the international fair later this month.

The move is widely seen as the North’s attempt to use the ship for its tourism project.

“It is meaningful in that the Mankyongbong-92 would set sail as a cruise ship for the first time,” said Cho Bong-hyun, a researcher at the IBK Economic Research Institute, noting the North seems to be revitalizing tourism in the economic zone and attempting to attract Chinese tourists to earn hard currency.

The North designated Rason as a special economic zone in 1991 and has since striven to develop it into a regional transportation hub, though no major progress has been made.

Read the full story here:
N. Korea pushing to use ferry to attract foreign tourists
Yonhap
Kim Kwang-tae
2011-8-5

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Friday Fun: Sunglasses, scuba, Pororo, and ladies football!

Thursday, June 23rd, 2011

1. The Leader’s so bright (I gotta wear shades). Only Kim Jong-il could give a talk to a packed auditorium while wearing sunglasses indoors…

2. As an frequent scuba diver, I was surprised to see this on North Korean TV this week:

I have not seen a dive suit like this outside of a museum.  Antique dive helmets in this style sell for well over US$1,000 and most are from Russia.  It seems like the DPRK could export its aging scuba gear, use the proceeds to buy newer/safer dive equipment, and have some cash left over.  The picture was taken at the Tanchon Port, which is being renovated.

3. Poor Pororo:

Back in early May, Pororo came out of the closet as a joint-Korean creation. With the implementation of new DPRK-US trade regulations (EO 13570), many were worried that the US was rolling up the welcome mat for Pororo videos—but he will be fine. OFAC explains why. Steve Park’s importation of Pyongyang Soju will also be fine.

4. North Korean Wave:

This week the DPRK launched a new television drama about its ladies national football team.  The show’s premier was announced on the KCTV evening news on June 18th and so far it has aired every day this week beginning on the 19th.  I have all of the episodes (so far) on my computer, and they are very fun to watch–even without subtitles.

The show appears to be shot on location at the ladies team’s training complex in Pyongyang (38.994877°, 125.811791°–right next to the Taedonggang Brewery):

And just as interesting, this show is the first example (of which I am aware) in which KCTV seems to directly engage in product placement advertising for a foreign-made product.  Here is a series of screen shots from the first four episodes:

The coach never takes off his FILA jacket. How long before all of the DPRK’s aspiring footballers want a jacket just like that one?

Interestingly, according to the FILA Wikipedia page: “Founded in 1911 in Italy, Fila has been owned and operated from South Korea since a takeover in 2007.”

I have uploaded a short sassy clip of the show to YouTube.  Watch it here.  Here is a story in Yonhap about the show (Korean).

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North Korea pushes forward with the modernization of Rajin Port

Tuesday, June 21st, 2011

Pictured above (Google Earth): Rason’s three ports: Rajin, Sonbong, Ungsang

Institute for Far Eastern Studies (IFES)
2011-6-21

North Korea and China hosted a groundbreaking ceremony on June 8 for the launch of the joint development project in Hwanggumpyong Island near the DPRK-China border. On the next day, the launching ceremony for the Rason Economic and Trade Zone took place.

The KCNA reported on April 27 that the modernization projects for the Rajin, Sonbong, and Ungsang Ports are to take place. According to the report, “These three ports in Rason City have the geographical advantage for maritime transportation. . . . Rajin Port, surrounded by Daecho and Socho Islands, is an ideal harbor that provides security and excellent marine conditions for docking ships.”

Currently at the Rajin Port, a number of equipment, fishery products, and processed foods are handled. An official from the Rason City People’s Committee stated, “There are plans of advancing Rajin, Sonbong, and Ungsang Ports even further to double the capacity and cargo.”

Recently, news on the Rason Economic and Trade Zone by the KCNA can be heard more frequently as North Korea is making an effort to advertise the development of this area. Recent reports covered news on the preferential tariff system, development program, and light industry zone.

The preferential tariff system of the Rason Economic and Trade Zone was adopted as means to lure more foreign investment into the area and improve the North Korea’s image as being more cooperative and supportive toward foreign businesses. Preferential treatment is being granted to foreign investors in order to turn the area into a major entrepot, export producer, and financial and tourist hub of Northeast Asia. One North Korean official stated, “Rason Economic and Trade Zone has favorable conditions to grow as a major trade zone. There are plans of constructing state-of-the-art equipment, facilities, and light industry factories to develop the area as a major export base.”

China and Russia are said to be paying special attention to the Rason Port development. China is already known to have invested in Pier 1 at Rajin Port and Russia in Pier 3.

North Korea has taken various legal measures to develop the area since Kim Jong Il’s field guidance visit to Rason City in December 2009. Rason City was designated as a “special city” in January 4, 2010 and the Rason Economic and Trade Zone Law was passed on January 27, 2010.

Additional Information:
1. A Swiss firm is alleged to have rented Rajin’s Pier No. 2, but it has not.

2. Here and here is some background information on the new Hwanggumphyon SEZ.  Here is some more information on the Rason ground-breaking and Chinese investment tour.

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