Consortiums plan to build coal railway system in Kalimantan

Two consortiums led by Russian and Chinese investors are planning to build trans-Kalimantan railway with main aim to transport coal and iron ore out of the island, Media Indonesia reported on Monday.

The first consortium, Transasia Resources, which is led by Russian investor, plans to build 297-km railway that connect Ampah area in Central Kalimantan to Tanah Laut in South Kalimantan. The consortium has coal concessions in Central Kalimantan.

The second consortium called Kereta Api Kalimantan, which led led by Chinese investors plan to build railways that would connect Pasir regency in East Kalimantan to Kotabaru in South Kalimantan.

The two consortiums plan to approach Kalimantan major coal miners such as Adaro Indonesia and Kideco Jaya Agung as their clients.

The two consortium revealed their plan during a presentation attended by South Kalimantan governor on Monday.

Several companies has earlier planned similar schemes to build trans-Kalimantan railway routes, but thus far, none is materialized. (*)