Upgrade of Yangon circular railway to cost $700 million

The Ministry of Rail Transportation will spend more than US$700 million to upgrade Yangon’s circular railroad, according to its estimate.

“This estimate amount does not include the cost for the sky train. An estimated $700 million will be spent only on the upgrade of the railway and train coaches,” said Tun Aung Thin, general manager for lower Myanmar at the ministry.

The ministry is planning to upgrade the railway next year in cooperation with the Japanese International Cooperation Agency (JICA). The move covers the extension of the railway section as well as replacing coaches.

The circular train’s speed will be more than doubled, from 30 to 80 miles per hour, and once the project is completed the ministry plans to start building a sky train with foreign loans, Tun Aung Thin added.

The upgrade is part of the plan to make rail travel the main mode of transport in Yangon. The ministry has sought assistance from countries with highly developed train transport systems, including Japan.

The project will begin soon as the ministry has already received approval from communities living near the rail tracks and it will be built in conformity with the environmental and social impact assessments that were conducted, the ministry said.

Besides upgraded the rail lines and replacing the coaches, the project includes upgrading stations, fencing, and installation of an alarm system and automatic gates.

The ministry has already opened a tender for the upgrade of Yangon railway station for both local and foreign companies. The tender winners will be announced soon, officials said.

​