Officials from Myanmar and Japan signed loan agreements to provide ¥‎40.604 billion to upgrade Yangon-Mandalay railway and ¥‎7.339 billion to develop infrastructure building in Thilawa area on March 31, according to Japanese embassy in Myanmar.

Japanese ambassador for Myanmar and officials from the Ministry of Planning, Finance and Industry signed the two loan agreements worth about US$445 million.

The loan provided to develop is intended for Phase 1 (Part 3) of Yangon-Mandalay railway which has 620 kilometers in length.

The ministry is implementing to develop Phase 1 of the Yangon-Mandalay railway, which has 166 miles in total between Yangon and Tanugoo and Phase 2 of the Yangon-Mandalay railway, which has 219 miles in total between Taungoo and Mandalay using a loan from JICA and state fund. Myanma Railways (MR) and Construction for Consultancy Services signed an agreement to develop Phase 2 of the Yangon-Mandalay railway.

At present, the MR is implementing a section of Yangon-Mandalay railway between Yangon and Bago and Yangon Circular railway, according to the MR.

Six express trains, two postal trains and four downstream and upstream trains running between Yangon and Nay Pyi Taw are operating daily. If the upgrading process is finished for the whole Yangon-Mandalay railway, the trains can run up to 100 kilometers per hour. The train will be run with fully air-conditioned carriages. 

The upgrading process of Taungoo-Mandalay railway is started in 2019 and is expected to be finished in 2023. The upgrading process of Yangon-Taungoo railway will be started in 2022. 

The ministry will spend US$2.7 billion loan from JICA to upgrade Yangon-Mandalay railway and it will be developed as a five-year project between 2018 and 2023.