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Summary South Korea and North Korea have agreed to re-establish a rail link that has been broken for half a century. The inter-Korean rail link, while symbolic, also lays the groundwork for overland transportation links from East Asia to Europe via Russia and China. While this promises economic growth and integration in the region, it may also spur increased competition between Russia and China, as they vie for a greater share of the Eurasian shipping. Analysis South and North Korea agreed to re-connect a rail line that links Seoul with Pyongyang, during ministerial level meetings on July 31. The agreement to rebuild and upgrade the Seoul-Shinuiju railway lays the groundwork for a proposed international railway that would link East Asia with Europe, via Russia's Trans-Siberian Railroad. The expanded overland transportation service will enhance the economic integration of East Asia and Russia's Far East. In linking its economic future with Asia, Moscow will in turn attempt to wield greater influence in East Asia - particularly in the Koreas and Japan - potentially triggering greater competition with China. The agreement to rebuild the 12-mile missing link along Korea's western coast and through the heavily fortified Demilitarized Zone (DMZ) is part of a larger effort to integrate and upgrade the transportation infrastructure on the Korean Peninsula. The plan also includes upgrading the North Korean section of the track, which runs 318 miles from Seoul through the DMZ, through Pyongyang, and terminates in Shinuiju, on the border with China. The rail line will fundamentally change the nature of trade and industry in the region. First, it will set the stage for industrial development in a reunified Korea; a large portion of South Korea's new industrial developments in North Korea will be along the western coast.
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