Govt issues permit to build coal railway in E. Kalimantan

The Ministry of Transportation has issued the so-called "principle permits" for the constructions of a 130-km railway in East Kalimantan for coal transportation, Kontan reported on Wednesday.

The ministry?s Director General of Railway Tunjung Inderawan said in Jakarta on Tuesday that the permits had been issued to Trans Kutai Kencana, a joint venture between PT Kutai Timur Investama owned by the East Kutai administration, and Middle East Coal Private Limited, a subsidiary of Ras Al Khaimah Investment.

"However, the consortium will still need to ask for licenses from the local governments to go ahead with their railway projects,? he said.

Trans Kutai Kencana's General Manager BS Rajan said the firm had secured 60 percent of lands needed for the railway project. (*)