RAILWAY III

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The Third Railway Project assists in financing the Investment Program of the State Railway of Thailand, which is part of Thailand's National Economic Plan for the years 1961-66. The Railway's program includes rehabilitation and modernization works, designed to increase capacity and reduce costs, mainly be dieselization. The Program is a continuation of previous investment programs for which Bank loans were made in 1950 and 1955, and which for the greater part have been successfully completed. The present Program comprises the procurement of 65 diesel locomotives and 1650 freight cars, track renewal on some 600 km of mainline, remodeling yards and replacement of timber bridges by steel bridges. In addition, furhter improvements will be made to signalling and telecommunications and repair facilities will be extended. The Program is designed to improve the Railway's operations and efficiency and to provide capacity for future traffic demands. During the period of execution of the Program, adequate funds will be available from the Railway's earnings and the Bank loan to cover the full cost of the Program.