RAILWAYS VI

closed

The Sixth Railway Project, which forms part of KNR's Investment Plan 1977-1981, aims at: (i) providing KNR with the capacity required to meet forecast traffic; and (ii) reducing operating and maintenance costs. It includes continued double tracking and line electrification, extension of yards and terminals, continued installation of centralized traffic control, track and rail renewal, separation of road and rail at crossings, installation of a permanent way workshop, procurement of diesel locomotives, passenger cars and freight cars, provision of a new passenger car workshop, installation of additional telecommunication and power facilities and provision of technical assistance to KNR. The project will also finance transport sector studies. The project will enable the railways to move increasing quantities of bulk commodities and passengers on routes for which the railways remain the most economic mode of transport, thus realizing sizeable savings in transport costs to the entire economy. The only risk is that traffic forecasts may be too optimistic. However, in an economy growing as rapidly as Korea's, the shortfall, if any, is not likely to be significant.