CMNP drops plan to build coal toll road

IDX-listed toll road operator PT Citra Marga Nusaphala Persada Tbk (CMNP) has cancelled an earlier plan to build a special coal toll road in South Sumatra due to the lingering downturn in global coal market, Kontan reported on Tuesday.

The paper quoted CMNP Finance Director Indrawan Sumantri as saying that the huge investment project is no longer feasible as the downturn in the global coal market has caused the price of the commodity to plunge, which in turn has forced miners to cut down production, thus would greatly limit the traffic volume in such toll road. ?The coal price has now been destroyed,? he said.

CMNP first unveiled the special toll road plan in 2012 that would link coal mining production centers in Tanjung Enim, Muara Enim and Lahat with the Tanjung Api Api Port. (*)