The project involves upgrading of the existing 620-kilometer (km) double track Yangon-Mandalay Railways. It includes renovation and modernization of rail facilities and equipment along the rail route connecting Myanmar’s largest and second largest cities (i.e, Yangon and Mandalay). Yangon-Mandalay Railways plays a major role in transportation since it is connecting and passing through the country’s main cities such as Naypyitaw, Bago, Taungoo and Mandalay.

Current travel time on Yangon-Mandalay Railway is about 15 to 16 hours so the preferred mode of transport for freight is by road where it takes half the time. The railway line also suffers from poor passenger service, train delays and uncomfortable train ride.