A Search for the Best Route in Connecting the Trans-Korean and Trans-Siberian Railways: A Cost- Benefit Analysis

Recently the route connecting the Trans-Korean railway and the Trans-Siberian railway becomes of critical interest for many academicians and policy-makers of East Asian countries. The review of previous studies, however, reveals that literature on the subject is rather one-sided, focusing on the political aspect of the issue or paying little attention to economic aspect of the problem. This study intends to develop a systematic approach in identifying the most efficient route from the four major alternative routes of connecting the Trans-Korean and Trans-Siberian railways. It tries to assign priorities to the four alternative routes according to their level of economic efficiency. This study utilizes a simple cost-benefit analysis in evaluating those four routes. For cost side, transportation time, effectiveness of customs procedures, and gauge difference are selected as the main economic factors. Whereas, amount of cargo, market size and foreign investment climate, industrial bases of adjacent regions, and access to natural resources are used to evaluate the benefit side of the routes. The study concludes that „Route 3‟ that connects „Busan - Seoul (South Korea) - Pyongyang (North Korea) - Shenyang - Beijing (China) - Ulaanbaatar (Mongolia) - Ulan-Ude - Moscow (Russia)” is the most efficient route.