Plans to build an efficient rail network linking China to six Southeast Asian countries are advancing as important gaps are filled in Cambodia, reported the Financial Times.

The Asian Development Bank recently agreed to extend a second US$42m loan for the US$141m reconstruction of Cambodia’s rail network. Funds are also being supplied by Australia and Malaysia. More than 650km of track is to be renovated, including a 48km section running west to Thailand that will then connect Cambodia to Malaysia and Singapore. The project is due to be finished by 2013.

The next project will be to bridge the gap between the Cambodia-Singapore and Vietnam-China lines.

The network is expected to strengthen economic ties by reducing transport costs and making travel more convenient. A new trade agreement came into effect in January that has cut tariffs on most goods exported between China and members of the Association of South East Asian Nations.