YANGON, Jan. 10 (Xinhua) -- China and Myanmar signed a memorandum of understanding (MoU) on Sunday to conduct feasibility study of a railway linking Mandalay, the country's second largest city in Myanmar's central region, with Kyaukphyu, the major town in Myanmar's Rakhine state, according to a release from the Chinese embassy in Myanmar.

File photo: CFP

Speaking at the signing ceremony, Chinese Ambassador to Myanmar Chen Hai said that the railway will contribute to Myanmar's economic development and the well-being of people as well as to strengthen the national reconciliation and peace process in Myanmar.

China-Myanmar railway cooperation, which includes the Mandalay-Kyaukphyu section, is an important project for the Belt and Road Initiative and the China-Myanmar Economic Corridor, Myanmar Transport and Communication Minister U Thant Zin Maung told the ceremony.

He expressed appreciation to China for its long-term support for peace development and railway projects in Myanmar and he also believed that the cooperation between the two countries will benefit the two peoples.