Hyundai E&C seeks to take part in US$1.6b Kalimantan coal railway project
Thursday, February 6 2014 - 01:07 AM WIB
The company said a memorandum of understanding was reached earlier in the week in Moscow with Russian builder RZDstroy for the construction project in East Kalimantan, South Korea?s Yonhapnews reported. The railroad will be built to carry coal and other commodities from mines and plantations located in the center of the island to the Balikpapan port city some 192 kilometers away.
PT Kereta Api Borneo, a local affiliate of RZDstroy, has already secured rights from the regional government for the railroad.
"The actual agreement on the construction itself is planned for 2015, after a year is spent on drawing up the blueprints," a company representative said. He added that details on the completion date will only be known next year.
The company also said the partnership with the Russian builder can open new opportunities for Hyundai to engage in similar work in Indonesia and in Russia, which are in the process of expanding its transportation infrastructure.
In Indonesia, Hyundai is presently engaged in four projects worth some $900 million, including the Peusangan hydroelectric power station.
JSC Russian Railways, the parent of RZDstroy signed an MoU with the East Kalimantan provincial administration in 2012 for the construction of the railway project linking Kutai Barat Regency and Balikpapan City. East Kalimantan Governor Awang Faroek was quoted by Petromindo.com in November last year, that the project was about to enter the stage of land acquisition, a process which is expected to be completed in eight months, in the hope that the railway could start operation in 2015.(*)