The economic zone of Rajin-Seonbong (Raseon) is located at the north-eastern border of North Korea, adjacent to China and Russia. Although its attractiveness to foreign investors has remained limited since its creation in 1991, Raseon is of growing interest as a transit port for Russian and Chinese trade. This paper reviews some theories on the constraints and advantages of remotely located ports, arguing that limited economic base can be overcome by a strategy based on transhipment flows to and from China, South Korea, Russia and Japan. In particular, it develops the idea that economic factors, such as remoteness from the nation"s core region, are not sufficient to explain the uneven success of the project. More likely is the mismatch between local industries and port facilities. Unlike the Chinese free-trade zone experiment, port and logistics development in North Korea may take place prior to industrial development, strengthening Raseon as a potential gateway and growth pole in Northeast Asia.
This paper analyses the interplay of transport and development in North Korea, one of the most state-controlled and underdeveloped countries of the world. While broader aspects have been well described by various studies, logistics have been given little attention as permissive or restrictive factors in the country's development. Despite the recent reforms and growth of trade, the development of North Korea is confronted to the weaknesses of the transport system and inland logistics. An analysis of vessel movements at North Korean ports shows that although coastal economies may increasingly use maritime transport to overcome inland blockages, the evolution of port traffics better reflects broader trends such as a general economic decline, the westward shift of populations, and the polarization of economic activities around the Pyongyang area. Beside those trends, the research also estimates the importance of maritime transport to North Korean trade and it provides a base upon which further studies can be conducted, so as to evaluate better the place of North Korea among transport studies.
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