Korea Railroad (Korail) President Lee Chul says that the inter-Korean railway project, once materialized, will have substantial positive effects on the two Koreas’ economies.

Lee told reporters Monday that a transcontinental train linking the two Koreas and China would attract much global attention if it were to begin running in time for the 2008 Beijing Olympics, following last week's summit agreement to open a cross-border railway.

According to the proposal, trains transporting athletes and cheering crowds will leave from Busan and Mokpo, stop by Seoul and Pyongyang before arriving in Beijing.

The Korail chief added that trains could start running by year's end once the two Koreas agree on and implement security measures through upcoming defense chiefs' and prime ministers' talks.