State-owned China Railway Group has won a $3.1 billion bid to build Bangladesh's railway network, according to the company's filing with the Hong Kong Stock Exchange on Tuesday.

China Railway Construction Crop Ltd. signed the construction contract with the Bangladeshi government on Monday in Dhaka.

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The railway project will link capital Dhaka to Jessore, located in the southwestern part of Bangladesh, with a train running at a top speed of 120 km/hour. The construction is set to be completed within 54 months, China Railway said.

"The project will promote trade links between Bangladesh and China, India as well as Myanmar," Xinhua reported.

The world's largest construction companies were represented by Zhang Xuecai, general manager of China Railway Eryuan Engineering Group CO Ltd. (CREEC), and Amzad Hossain, director general of Bangladesh Railway.

The railway project includes the development of 66 main bridges, 244 minor bridges, 14 new rail stations, and procurement of 100 passenger coaches, as proposed by the Bangladesh's railway ministry, China.org reported. Furthermore, it will be under the Trans-Asian Railway (TAR) project that targets to establish an integrated freight railway network across Asia and Europe.

A portion of the railway will allegedly be functional by 2018 when the Bangladeshi government starts publicizing the infrastructure project.

Last month, China planned to provide a lump-sum amount of $9 billion as a low-interest loan to Bangladesh for the improvement of its railway system. The move is part of Bangladesh's $30 billion modernization plan to upgrade its rail link, much of which date back to the British colonial times.

Tagschina, Bangladesh, railway network, Railway system, train