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China, Thailand agree on new rail deal

Bangkok - Thailand and China agreed on Friday to build 867km of dual track railways in the southeast Asian nation, in co-operation seen as consolidating China's influence in the region.

A memorandum of understanding was signed on the sidelines of a two-day regional summit held in Bangkok.

The project could be a boon for Thai trade and tourism and strengthen China's strategic foothold in a country that has seen its traditionally strong ties with the United States cool since a military coup in May.

Thailand's transport minister, air chief marshal Prajin Junthong, told reporters: "China will be responsible for the construction and development of the rail network and Thailand will take part in preparing the groundwork for construction."

Dual track railway

The first line will be a 734km standard-gauge dual track railway stretching from Nong Khai on Thailand's border with Laos, to its industrialised eastern seaboard. China has provisionally agreed with Laos to build a railway from Kunming through Laos, with the aim of connecting with Thailand.

China will also develop another 133km rail track linking the central province of Saraburi to Bangkok, about 108km away. Construction will begin in 2016, Prajin said.

No details of the cost of the projects were disclosed, but earlier Thailand's military-stacked legislature approved a preliminary agreement on the China deal, putting the value at $10.66bn.


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