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Rail Deals

July 16, 2010 (LBO) - Indian and Chinese companies have been awarded two deals to modernise and rebuild parts of Sri Lanka's railway network damaged by war and extend tracks, a government statement said.
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Indian and Chinese firms have already been given contracts to rebuild or modernise other parts of the rail network in the north and south of the island.

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It said the Cabinet had approved a deal to rebuild the Northern Railway Line signaling and telecommunication system to be given to the Indian Railway Construction International at a total cost of 86.
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5 million US dollars.

The track was destroyed during the 30-year ethnic war which ended in May 2009.



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The state-owned Ceylon Government Railway is also to enter into a contract with China National Machinery Import and Export Corp (CM) l to develop the southern Matara Beliatta railway line at a cost 290 million dollars.

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The contract will include the signaling and telecommunication system, the ticketing system and their maintenance, the statement said.

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Sri Lanka is rebuilding and extending the railway network with the end of the war.

The government intends to make the railway carry a bigger share of the passenger and cargo loa

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