BA to boost coal transportation capacity
Monday, April 10 2000 - 04:00 AM WIB
State owned coal mining operator PT Tambang Batubara Bukit Asam (PT BA) and state railway operator PT Kereta Api Indonesia (KAI) have agreed to jointly invest about Rp 425 billion to increase the coal transportation capacity from the coal mining site in Tanjung Enim, South Sumatera and Tarahan port in Lampung province, Media Indonesia reported on Monday.
PT BA president director Sunardi said on Saturday that the memorandum of understanding on the cooperation had been signed and the two companies were still preparing details of the win-win cooperation.
He said that an independent consultant was assessing the cooperation agreement and found out how much each company would share the investment costs so that none of them would suffer from the cooperation.
He said the project would able to increase the coal transportation capacity to 12.5 million tons per year beginning 2002 or 2003, an increase by about 4.5 million tons a year from the present capacity. "It is certainly a feasible investment," he added.
The new investment is also needed to increase the number of locomotives from 40 at present to 70 as well as to improve the railway track, he said. The two companies are also considering the establishment of a join venture company to oversee and operate the coal trains. (*)