◆ A desperate measure: utilizing railways as truck transport becomes difficult
Behind this railway emphasis lies the growing difficulty of using freight trucks. Starting around 2023, the Kim Jong-un regime strictly regulated individuals and enterprises from procuring vehicles and operating transportation businesses. A thriving transport industry had developed where transport companies—whether dealing in Chinese imports or domestic products, operated by trading companies or effectively by individuals—ran their businesses according to market principles.
The Kim Jong-un regime defined this as "anti-socialist phenomena" and cracked down harshly, beginning to take control of food and factory product transportation. This was to reclaim control of logistics from the market back to state management.
Another reason for emphasizing railways is the sharp rise in fuel prices. For example, the price of 1 kilogram of gasoline (liter-based transactions are uncommon in North Korea), which ASIAPRESS has continuously tracked, was 13,000 won in January 2023 but jumped to 40,000 won in January this year—more than tripling. This is due to rising international oil prices and the depreciation of the North Korean won.
The state has been forced to rely on railways powered by electricity generated from hydroelectric and coal-fired thermal power (North Korea's railways are predominantly electric trains, with diesel locomotives in the minority).
The problem is how to transport goods brought by rail to state-run stores and factories. Reporting Partner B said, "They're newly installing logistics warehouses at each station to transport goods from there to state-run stores and such, but fuel is expensive and they can't smoothly procure vehicles."
However, ASIAPRESS was unable to conduct research outside the northern region. Since railway operations require uniformity, the policy of prioritizing power supply to railways appears to be a nationwide initiative.
※ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea.
