The Asian Development Bank (ADB) is providing a $100 million loan to help develop an efficient and effective emergency management system for China's railway system.

The Railway Safety Enhancement Project will also receive $40 million from the Ministry of Railways to complete the funding requirement, ADB said in a statement released on Monday.

The new technology will enable the railway system to respond more quickly to emergencies, reduce restoration time and enhance safety, it said.

The successful implementation of the project will lead to improved reliability, higher mobility, increased network capacity, optimal use of the railway network and other related assets, and increased staff productivity, the regional lender said.

At the end of 2006, China's railway system spanned 77,000 kilometers. The country's rail system has the highest freight transport density in the world and the second highest passenger transport density next to Japan, the bank said.