U.S.-based rail operator Burlington Northern Santa Fe (BNSF) will act as advisors to the Rwandan government on the project.

The railway will run from Isaka in southern Tanzania.

"The construction of a rail link between Isaka and Rwanda's capital is planned to start later this year, the president was told today," said the statement, seen by Reuters on Saturday.

"A delegation of BNSF officials has also told President Kikwete the construction is expected to be completed in 2013."

It did not say how much the project would cost, or who would finance and construct the railway.

Political turmoil in Kenya since a disputed presidential election last month has disrupted road transport, affecting Rwanda, Uganda, Burundi, eastern Democratic Republic of Congo and South Sudan.

Last week, part of Kenya's rail network was disrupted when protesters uprooted part of the track running through Nairobi. The operator, Rift Valley Railway, expects services to resume next week after repairs.