Operated by Myanma Railways, the 45.9-kilometre (28.5 mi) 39-station loop system connects satellite towns and suburban areas to the city.

[1][2][3] The railway is heavily utilized by lower-income commuters, as it is (along with buses) the cheapest method of transportation in Yangon.

[9] In July 2011, the Ministry of Rail Transportation announced that it intended to privatize the Yangon Circular Railway, since the government-run system operates at a loss for the government, with monthly operating costs about 260 million kyats (US$325,000) and monthly revenues about 42 million kyats (US$52,500).

[16] In December, 2020, a contract was awarded to a consortium of Japan's Mitsubishi and Spain's CAF to provide 11 six-car diesel powered trains with the aim of reducing the travel time of the full loop from 170 to 110 minutes.

[17] In February 2024, the first CAF built train was delivered to Myanmar, and subsequently begun testing.