The ice-free port of Rason (formerly Rajin-Sonbong) on North Korea's northeast coast is assuming growing prominence in the regional coal trade. Mongolian coal producer Sharyn Gol has contracted Mongol Sammok Logistics to transport its coal via Russia to Rason, from where it would be shipped by sea to South Korea and Japan. Previously, landlocked Mongolia delivered the majority of its exports to China, leaving its economy dependent on its powerful neighbour and putting it at a disadvantage in price negotiations. Shipping its coal to Korea is part of an effort to find new markets, and will allow Mongolian miners to manage the risk of slowing growth in China. Mongolia already has an agreement with North Korea that gives its exporters preferential treatment at the port. Last year, Hyundai Merchant Marine and South Korea's top steelmaker PO-SCO, which imports some 2 Mtpa of Russian coal, started importing Siberian coal through Rason. Close economic ties between Pyongyang and Beijing have facilitated the transport of freight from northeast China, which has plentiful natural resources, to its central region via the North Korean port. The maritime route including Rason has enabled Chinese shippers to significantly reduce costs over the more time-consuming overland route. Rason's 4 Mtpa coal handling terminal was launched last year, with Russian Railways (RZD) its key developer.
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