The Shanghai Urban Construction Group (SUCG), a state-run Chinese enterprise, has made an offer to build a 15km long underground railway in Karachi, Pakistan, within the next five years according to reports. The project estimated at US$500M could progress as a joint venture between the two countries and it is hoped that China may extend a soft loan to help with the undertaking. Initial technical studies have suggested conditions are favourable for tunnelling, while talks are ongoing between the countries.