| Won | Pyongyang | Sinuiju | Hyesan |
|---|---|---|---|
| Exchange Rate | 8,070 | 8,050 | 8,095 |
| Rice Price | 5,800 | 6,000 | 5,900 |
New forms of transportation and distribution spurred by popular demand in North Korea, creating the country’s new affluent middle class, known as the donju, is reported to be on an upward trend. Trams and boats are increasingly being utilized in field of distribution, and gaining popularity to the once dominant use of trucks and buses [servi-cha] for the same purpose.
Amid the chronic shortage of power plaguing the country and disrupting general electric train service, internal combustion locomotives powered by diesel and small electric trams, which can run on batteries and require less electricity, are emerging at the forefront of goods transportation currently.
“The Ministry of Railways and fisheries enterprises are mobilizing diesel locomotives and all kinds of boats to rake in foreign currency,” a source based in Gangwon Province told Daily NK on Thursday. “Foreign-currency earning enterprises and even individual vendors are able to get diesel locomotives and freight cars assigned to them as long as they pay the fee in USD to the Ministry of Railways in Pyongyang or the corresponding province.”
He went on to explain that during power shortages, electric trains run--at best--intermittently, but diesel trains can operate as long as fuel is in supply. “From Wonsan to Sinuiju, electric trains can take as long as up to a week, but diesel trains arrive on the same day,” he said, explaining their clear superiority as an alternative method of transport.
Following the July 1st Economic Management Reform Measures in 2002, which removed a number of state controls and extended the autonomy of companies, factories saw the emergence of “extra money-makers,” who used trucks and buses [servi-cha] to move products, and now, the Ministry of Railways and fisheries enterprises have jumped on the bandwagon. The consistent payments they receive from these donju for the vehicles ensures the relatively seamless distribution and transportation of goods.
“Small vendors that move within the province most commonly use passenger vehicles, namely pickup trucks, or small trams,” the source said. “In the case of coastal cities, they use a 30 to 200 horsepower fishing vessel from fisheries companies to transport goods.”
“If you’re trying to move 60 tons of frozen fish on the roads to a different province, you would need six trucks, not to mention that you would have to cross dozens of checkpoints, which means you’re going to incur a lot of losses [to bribes],” the source pointed out. He added that these new modes of transportation deliver goods directly to the desired destination, making them an economically favorable option over trucks and buses for “extra money makers” pouring out from factories eager to reap a profit.
Despite hefty fees, the benefits are self-evident for those who can afford to employ these services. “It costs 800 to 1,000 USD for a diesel train or boat to run a 400 km strip, while it costs 300 USD per freight car that can load 60 tons,” he explained. “These rentals guarantee priority delivery over regular trains, so the Ministry of Railways refers to them as ‘command trains’ [that operate under special orders]."
*Translated by Jiyeon Lee










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