China and Myanmar has signed a memorandum of understanding (MoU) on October 22,  to conduct feasibility study of a railway linking Muse, a border town in Myanmar’s northeastern Shan state, with Mandalay, the country’s second largest city in the north.

Under the MoU signed between China Railway Eryuan Engineering Group Co. Ltd and state-run Myanma Railways, the feasibility study will be conducted within two years covering environmental and social impact assessment.

Moreover, China is implementing networks with Myanmar in road as well as the energy sector. According to Chinese ambassador to Myanmar Mr. Hong Liang. China will support finance, technology, human resources and management sectors.

The north of the country between Muse and Mandalay is seen as crucial to improving the connectivity of the Southeast Asian nation. It is also part of the China-Myanmar Economic Corridor – linking Yunnan with key commercial centres in Myanmar – under Beijing’s vast trade and infrastructure push under the “Belt and Road Initiative”.

The project would span 431 km (268 miles) and have a designed speed of 160 km/h (99mph). It will run through important towns in the country’s north and some economic hubs. It will apply standard use in China-Laos-Thailand railway project. The railway will contribute to Myanmar’s economic development as well as peace and stability of northern Myanmar.

After completing Muse-Mandalay railway road, it will connect the pan-Asia railways in the west region. It will supplement the railway network in IndoChina peninsula. By doing so, Myanmar will upgrade trade, socio-culture standards with countries in the region according to Mr. Hong Liang.