Five firms to build coal railway in five provinces

Five local and foreign companies will build coal railway networks in five provinces including Bangkulu, South Sumatra, Central Kalimantan, East kalimantan and South Kalimantan.

The five companies, that is local firm PT Pathway International, UEA-based firm Ras Al Khaimah, Japanese firms Itochu Corporation, the consortium of Nippon Koei Co. Ltd and Marubeni Corp. and local firm PT Senong Corporindo, have signed a memorandum of understanding with each of the provinces to build the coal railway tracks.

Pathway will, for example, build a 160-km coal railway track connecting Bengkulu and West Sumatra. ?Total investment will reach about Rp 12 trillion (1 US$=9,160),? said Wendy Aritenang Yazid, the Director General of Railway at the Ministry of Transportation.

Ras Al Khaimah will build a 90-km railway track linking Simpang station and Tanjung Api-Api in South Sumatra. ?The company is still conducting a feasibility study for the railway project,? he added.

Itochu Corporation will build a 185-km railway project connecting Palaci and Bengkuang in Central and South Kalimantan. ?Itochu has finished feasibility study,? he said.

Meanwhile, Marubeni and Nippon Koei will develop a coal railway track in Central and East Kalimantan. The 361-km railway will connect Muaratuhup, Kalipapak and Balikpapan.

PT Senong Corporation will also build a 450-km railway track in East Kalimantan, Wendy said. ?This project is currently under a preparation for feasibility study,? he added. (*)