China has launched a 15 billion yuan (about 1.8 billion US dollars) project to upgrade a 945-kilometer-long stretch of electric railway line with the use of German loans.

The project, to be completed in 2001, will enable trains on the line between the cities of Harbin and Dalian in northeast China's Heilongjiang and Liaoning provinces to travel at speeds up to 200 kilometers per hour, thus easing traffic in the region and promoting Sino-Russian border trade.

Renovation of the line, which was built a century ago, involves 360 million German marks (about 188 million US dollars) in loans from the German government and banks, as well as German equipment and technology.

While launching the project on Thursday, railway officials said the new line will also enhance northeast China's links to other parts of the country.

Upon completion, this electric railway line will be the railway with the highest technology and largest investment in China. (Xinhua)