DHAKA - A leading Chinese company has signed an agreement to lay a dual-gauge track on the capital Dhaka-adjacent Narayanganj district route to increase Bangladesh Railway's capacity nearly fourfold.

Power Construction Corporation of China Limited signed the construction contract with the Bangladeshi government on Monday in the capital Dhaka.

Commercial Manager of Power Construction Corporation of China Limited Zhang Peiliang and Additional Director General (infrastructure) of Bangladesh Railway Kazi Mohammad Rafiqul Alam signed the agreement on behalf of their respective sides.

The Bangladeshi government in January 2015 gave the final go-ahead to the project of about a rail link from Dhaka to Narayanganj district, about 20 km away from the capital.

Construction is scheduled to be completed by June 2019.

The total project cost would be met through the Bangladeshi government's own funds.

Chaired by Prime Minister Sheikh Hasina, a meeting of the Executive Committee of the National Economic Council in January 2015 approved the 3.79 billion taka ($470 million) project.

Once the track is laid, Bangladesh Railway will be able to transport nearly 100,000 passengers on the route every day against its current capacity of 23,000 commuters.

Under the project, a dual-gauge track will be laid parallel to the existing meter-gauge track.

Seventy-six trains would run on the route every day after completion of the project. At present, 32 trains ply the route.