South Korea’s top steelmaker POSCO and shipper Hyundai Merchant Marine are exploring the possibility of importing Russian coal via North Korea ahead of the pilot program of the Rajin-Khasan logistics project scheduled for next month, industry sources said on Wednesday.

Hyundai Merchant Marine plans to charter a bulk carrier to ship the coal from Rajin in Rason Special City, North Korea, to Pohang, North Gyeongsang Province, in the South based on an order placed by POSCO, according to sources. The steelmaker said that with the order it would be able to check if coal can be brought into the country through North Korea without complications. The company imports some 2 million tons of coal from Russia every year.

In November, the Unification Ministry gave the green light to POSCO to import 35,000 tons of Russian coal via Rajin. If successful, this would mark the first time for South Korean firms to import Russian raw material through the North Korean port.

The pilot project is part of President Park Geun-hye’s “Eurasia initiative,” which calls for expanding ties among Eurasian countries through connections of roads and railways to build the new “Silk Road Express.”

(hnpark@heraldcorp.com)