Bukit Asam to start railway project construction in October

State-owned coal mining company PT Bukit Asam Tbk (Persero) Tbk. (PTBA) plans to hold the ground breaking for the company?s coal railway project in Tanjung Enim to Srengsem in October this year.

PTBA?s Corporate Secretary Ahmad Sudarto said that the project would be commenced ahead of the initial schedule to ensure that the 307-km railway project could be completed in end 2014.

The company expected to complete all land acquisition process early next year so that PT Bukit Asam Transpacific Railway (BATR), which will build and operate the railway project could carry out the construction works on schedule.

BATR is a joint venture between PTBA, with a 10 percent stake, PT Transpacific Railway Infrastructure with a 80 percent stake and China Railway Engineering Corporation (CREC) with 10 percent stake. PT Transpacific Railway is owned by Rajawali Corporation.

The US$1.8 billion railway project will be financed by loans from a number of Chinese banks. When the project is completed, PTBA can increase its production to 25 million tonnes a year.

Earlier, Rudiantara, Chief Executive Officer of BATR said that the railway project is on track to start operation of coal railway in Tanjung Enim by middle of 2015. ?We have scheduled to complete final closing for administration this year. It will be followed by construction which will take 3.5 years and it is expected to start operation in middle of 2015,? he said in early August. (*)