Luxembourg has announced its plans to invest nearly $352.21m (€300m) this year for the development of its rail network.

The announcement was made by the Ministry of Mobility and Public Works.

Under the investment, around 34 new trains from France-based manufacturing firm Alstom will be procured, reported Luxembourg Times.

The development project will include the extension of Luxembourg City’s central train station, which will involve the addition of four tracks and two new rail platforms.

Rail operator Luxembourg National Railway (CFL) will also work on the construction of another footbridge, linking the Bonnevoie district of the capital city to the Gare.

By the end of 2025, around 3,800 parking spaces will be added at train stations to encourage public to travel by trains.

The ministry stated that the passenger traffic has increased by 85% in less than two decades.

Earlier this month, the European Commission (EC) responded positively and agreed to support the development of the train link between Luxembourg and Belgium.

Luxembourg and Belgium had jointly requested for the development of the line.

The EC has decided to form ‘a working group to take stock of the situation’.

The work on this line is expected to be completed by 2030.