European investors eye coal railway project in Kalimantan

Two European investors are interested in building and managing a 138 km-long railway track specially used to carry coal from Palangkaraya in Central Kalimantan to Banjarmasin in South Kalimantan, Bisnis Indonesia reported Monday.

The planned Palangkaraya-Banjarmasin railway track construction project is estimated to cost around US$201.2 million.

Secretary General of the Transportation Ministry Aritenang Yazid said that the two investors, one of whom is from France, are ready to partner with local investors by establishing a consortium.

?The investors from Europe will establish a consortium involving local investors. Under the draft bill on railway, the construction of special railway track is open to private companies,? he said in Jakarta Sunday.

Earlier, a Japanese investor, Nippon Koei Co Ltd, expressed its commitment to build a 500 km-coal railway track worth US$1.25 billion in Kalimantan.

Director General for railway firm Soemino Eko Saputro said that the Japanese investor has submitted the proposed study (on the railway line project) to the government and ?the license is expected to be issued in the near term.?

?The license will be issued by the government. At present, the issue is still under discussion and we are waiting for the enactment of the law,? Soemino said.

A team from the directorate general of the railway is now evaluating the study submitted by the three investors, including efforts to increase the load capacity of the line to between 23 tons and 30 tons. (*)