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Economy / South Korea

'Iron Silk Road' Delayed, Indefinitely

July 2006 | Political Outlook

BMI View: North Korea's decision in late May to cancel the test run of a new railway link between the two Koreas represents a major setback for the South's long-cherished dream of a Eurasian 'Iron Silk Road' railway, connecting Northeast Asia with European markets via Russia's Trans-Siberian Railway (TSR). This ambitious project will continue to be delayed by disagreements over financing and alternative transport routes and by the unpredictability of the North Korean regime.

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