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Rail Services
Two Koreas resume rail service after five decades   

Seoul, South and North Korea Tuesday resumed the regular train service after a gap of more than half a century, in a move considered as a major breakthrough in rebuilding economic ties between the two.

The first 12-carriage cargo train carrying raw materials left South Korea's Munsan station early in the morning for the Kaesong industrial park in North Korea. The freight-only service will run daily on weekdays.

'The launch of the cargo train service is a significant event that will mark a page in the nation's history,' South Korea's senior minister Kwon Ho-ung was quoted as saying by Yonhap news agency.

'It will invigorate the Kaesong industrial complex while greatly contributing to achieving reconciliation, cooperation and the unification of our nation,' Kwon said.

The Kaesong complex is the largest joint economic project between the two countries. Dozens of South Korean companies are operating at the park, employing more than 20,000 workers, mostly from the North.

The South has until now relied on road and sea transit to supply goods to the complex, and the opening of a regular cargo rail link is certain to speed up deliveries and bring costs down.

In November the two Koreas agreed on a range of projects aimed at rebuilding the impoverished North's decaying infrastructure, including South Korean plans to build a shipyard in the northwest of the country and to repair the highway linking Kaesong to the capital city of Pyongyang.

The two states have yet to sign a formal peace agreement to replace the ceasefire following the 1950-1953 Korean War, meaning that the sides technically remain at a state of war. The US, whose signature is needed on a peace treaty, has said it will not sign until the North scraps its nuclear weapons 'in a verifiable fashion.'
 
Higher material cost
VIETNAM'S BUILDING PROJECTS SLOW ON HIGHER MATERIAL COSTS


HANOI, Dec 12 Asia Pulse - Work at several public construction projects in Ho Chi Minh City slowed to a standstill following news of higher prices for building materials, according to project contractors.

Construction on the Nguyen Van Cu Bridge project, which connects Districts 1 and 5 to Districts 4 and 8, is far behind schedule as contractors find themselves having to recalculate their costs to account for material costs that are greater than what they first estimated when they began the project.

Nguyen Ngoc Ngu, Bridge Company No 14 supervisor overseeing the construction of Nguyen Van Cu Bridge projects bidding package No 1, said the company would lose about VND9 billion (US$560,000) with the extra expenses. The contract was signed for a construction cost of VND39 billion (US$2.4 million).

Le Hoang Bao, director of Construction Company No 508s HCM City branch said the company would pay an additional VND36 billion ($2.25 million) for material costs, which are an average of 23 per cent higher than what they were when the contracts were first signed. Construction Company No 508 is the contractor for bidding package No 2 and No 3 of Nguyen Van Cu Bridge project.

The price of steel skyrocketed by 50 per cent this year compared to last year while the prices of cement and sand jumped by 30 per cent, according to project contractors.

The HCM City Transport and Public Works Company said after its project was delayed for one year due to clearance procedure, it now faces extra costs of construction materials. The company is the contractor for the project to widen Nguyen Thai Son Road in Go Vap District and Tan Phu Trung Road in Cu Chi District.

"If the company continues the project, it will face losses," said a company official.

Construction is moving slowly as company officials wait for documents from the city to determine the extra costs, he said.

Despite the recently issued Decree No 99/2007/ND on management of construction expenditures, including calculating extra costs for contractors, city officials have not issued guidance documents to implement the decree, the official said.
Read more...
 
Vessel carrying cattle sinks
Vessel carrying 10,000 cattle head sinks in Red Sea

Sana'A freight vessel carrying about 10,000 head of cattle intended for a feast to mark an Islamic festival sank near the Hanish Islands in the Red Sea.

The accident occurred Monday and all the cattle head on board drowned. However, all 22 members of the crew were rescued by Yemeni coastguards, WAM news agency reported.

A naval source in Al Hudeida province in Yemen was quoted by local media as saying the coastguards rushed to the area where the ship was stranded and were able to rescue the crew members and transport them to Al-Makha port.

The ship was coming from Somalia towards Djibouti. It was not immediately known why the vessel capsized.

The animals were to be sacrificed as part of Eid al-Adha, also known as the Sacrifice Feast, to be celebrated Dec 20.

The festival commemorates prophet Ibrahim's willingness to sacrifice his son Ismael for Allah. Traditionally, a large portion of the meat is given to the poor.
 

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