VLADIVOSTOK, October 4 (RIA Novosti) - Russia and North Korea began Saturday the reconstruction of a railroad from Russia's Khasan to North Korea's sea port of Rajin, a project estimated at 150 million euros ($207 million).

Russian Railways (RZD) CEO Vladimir Yakunin and North Korean Railways Minister Chon Kil Su attended a groundbreaking ceremony in Tumangang on the border.

The Russian rail monopoly and North Korea's Railways Ministry signed in April 2008 a contract for the reconstruction of the 55-km Khasan-Rajin section that will link Russia's Trans-Siberian railroad to the North Korean port city of Rajin. Eurasia's largest transcontinental railroad of over 10,000 km will be established as a result.

Cargo transshipment from Asia to Europe along the route will take 14 days, while sea freight shipping takes 45 days.

The completion of just the first stage of the project will make it possible to attract up to 100,000 containers annually to the Trans-Siberian railroad, a spokesman for Far Eastern Railways said.