DHAKA, Aug. 4 (Xinhua) -- Bangladesh's Railway signed a 58.31 million U.S. dollars contract on Thursday with Tangshan Railway Vehicle Co. Ltd. of China for procurement of 20 sets commuter trains.

Abu Taher, Director General of Bangladesh's Railway, and Zhen Dawei, Deputy General Manager of Tangshan Railway Vehicle, signed the contract on behalf of their respective sides here.

According to the contract, Bangladesh's Railway will purchase 20 sets Meter Gauge Diesel Electric Multiple Units (DEMU). The contract value will be 58.31 million U.S. dollars including spare parts, tools and equipment, training and services.

Syed Abul Hossain, Bangladesh's Communications Minister, Zhang Xianyi, Chinese Ambassador in Dhaka, among others, were present at the contract signing ceremony.

According to Tangshan Railway Vehicle, each set of DEMU, which consists of three units, can carry 300 passengers. The service speed of DEMU is 80 km per hour.

Bangladeshi Communications Minister said at the ceremony that introduction of railway commuter train in the form of DEMU is a special version of train service aiming at reducing traffic congestion of urban and suburban areas and eventually render safe, better and comfortable services to the passengers.

He said that by introducing DEMU, Bangladesh's Railway will enter into a new era of modern train service.

Zhang Xianyi, the Chinese ambassador, said these trains will not only help to improve the railway system of Bangladesh, but also will help to speed up the development of the Bangladeshi economy.