Govt prepares C. Kalimantan coal railroad tender

The tender for the construction of the 185-kilometer railway project for the transportation of coal in Central Kalimantan will likely be launched before the end of this year, Media Indonesia reported on Monday.

The newspaper said that the National Development Planning Board (BAPPENAS) and the local government would hold this week a meeting in the province?s capital of Palangkaraya to brief investors interested to take part in the project.

Central Kalimantan Governor Teras Narang said that the US$1.5 billion railway project which would link Puruk Cahu and Bangkuang and thus connect the province?s coal mines and major export ports. It will stretch 185 kilometers from Puruk Cahu to Bangkuang, passing Murung Raya, Barito Utara and Barito Selatan regencies to the east of Barito River.

The Paruk Cahu-Bangkuang Coal Railway Transportation Project will be developed through Public-Private Partnership (PPP) scheme.

To expedite the project plan, the Central Kalimantan provincial government will open pre-market sounding on Sept. 11 in Palangkaraya, he said.

The railway is expected to boost economic development in the province, provide an alternative to the limited road capacity, and overcome the problem related to river transportation during the dry season. It will also provide a mode of transportation that is safe, more reliable and environmentally friendly. (*)