Chinese firm to build new railway track for PTBA

PT Trans Pacific Secorindo, a subsidiary of a Chinese company, will build a new railway track in South Sumatra to provide a new transportation alternative for state owned coal producer PT Tambang Batubara Bukit Asam to transport its coal to both local and foreign buyers, Bisnis Indonesia reported on Friday.

Sean Setiadikurnia, the spokesman for Trans Pacific, said in Palembang on Thursday that that the construction of the new railway road which would link PTBA to the province's Tanjung Api-api port would cost about US$70 million.

"The funds will be provided by the Chinese government through the Commercial Bank of China," he said.

At present, PTBA, one of the country's largest coal producers, transports its coal through South Sumatra Lampung railway track. The coal is transported to a coal terminal in Tarahan, Lampung before being shipped to domestic and foreign buyers. (*)