The project involves rehabilitation and modernization of Mandalay-Myitkyina Railway Line to reduce accidents. Government budget has been used for regular technical maintenance since 2017, including replacement of welded rail and refilling ballast with tamping machine. Trains on the Mandalay–Myitkyina route experience serious delays due to bottlenecks where track capacity is restricted and track and operating conditions are difficult. Two bottleneck sections, Gyohtaung-Me`za section and Mawhan-Kardu section, are located in mountainous areas with sharp curves and steep gradient.

The 547-kilometer Mandalay-Myitkyina Railways was constructed in 1889 and completed in 1898. Railway tracks, embankments and bridges have deteriorated in the absence of major rehabilitation works since its completion in 1898. Train speed cannot be increased due to unreliable train schedules, insufficient and inadequate maintenance works for railways, and weaknesses of locomotives and cars.