Bukit Asam to build double railway tracks to boost exports

State owned coal mining company PT Tambang Batubara Bukit Asam plans to build 470-km double railway tracks linking its mining site in Tanjung Enim, South Sumatra to Tarahan in Lampung and to Tanjung Api-api port in the Bangka strait, in order to boost its coal exports, Bisnis Indonesia reported on Friday.

Bukit Asam expected to invest about US$1.14 billion in the construction of the railway tracks which would be built in cooperation with two Chinese companies China CITIC and China Railway.

The company's corporate secretary Milawarma said in Jakarta on Thursday that China CITIC would build the 240-km railway track between the company's mining site in Tanjung Enim to Tanjung Api-api , while China Railway would built the other 230-km railway track linking Tanjung Enim and Tarahan port.

At present, PT Bukit Asam transport its coal through state owned railway operator PT Kereta Api Indonesia's railway track to Tarahan before shipping the coal to both local and overseas buyers. But due to the poor condition of the existing railway track, the company could only transport about 10 million tons of coal a year.

Milawarma said that with the construction of the new railway tracks which were scheduled for completion in 2008, the company expected to be able to double its coal exports to about 20 million tons a year. (*)