Api-Api railway project

Govt to resume PTBA's coal transportation Kertapati-Tanjung The government will resume its plan to build a new 87-km railway linking Kertapati in Palembang, South Sumatra and the province's Tanjung Api Api port to boost coal transportation from state-owned coal mining company PT Tambang Batubara Bukit Asam (PTBA), Bisnis Indonesia reported Friday.

South Sumatra governor Syahrial Oesman said in Palembang Thursday that President Soesilo Bambang Yudhoyono had instructed Minister of Transportation M. Hatta Rajasa to go ahead with the plan to build the Keratpati - Tanjung Api-Api port on schedule.

Minister of transportation said earlier that the planned construction of the Kertapati-Tanjung Api-Api railway track scheduled for 2007 had to be delayed because the funds would be allocated for the rehabilitation of the existing Kertapati-Tarahan railway track.

Local administration had allocated Rp 48 billion for the land clearance for the new railway track, he explained.

The construction of the new railway track will also be followed by the construction of a coal-receiving terminal in Tanjung Api Api port as a supporting coal terminal Tarahan which currently has a capacity of 12 million tons per year.

The construction of the new railway track would be able to boost PTBA's coal production to 30 million tons a year. (*)