China and Myanmar reached a memorandum of understanding in Nay Pyi Taw Wednesday on a joint rail transport construction project extending between Myanmar's border town of Muse and western Rakhine state's Kyaukphyu, a port city.
 
The MoU on building the railroad, signed between the China Railways Engineering Corporation and the Myanmar Union Ministry of Rail Transportation, was witnessed by Myanmar Vice President U Tin Aung Myint Oo, Chinese ambassador to Myanmar Li Junhua,  Myanmar Union Minister of Rail Transportation U Aung Min and President of the China Railways Engineering Corporation Li Changjin. 

The MoU covers the environment conservation and development project along the rail road between the two destinations.

According to the MoU, the first phase of the overall project of Muse-Lashio-Kyaukphyu is from Muse to Lashio in Shan state  which stretches as 126 kilometers with 41 big and small bridges, 36 tunnels and seven railway stations to be added along the route.

The project, targeted to complete within three years, is to be implemented in line with another ongoing China-Myanmar gas pipeline project from Kyaukphyu to Kunming in southwest China's Yunnan province via Muse.