Itochu, C. Kalimantan administration to sign MoU on coal railway project

Major Japanese trading and investment company Itochu Corporation and Central Kalimantan administration will sign today a memorandum of understanding (MoU) on the construction of a coal transporting railway track in Jakarta.

Central Kalimantan governor Agustinus Teras Narang said in Jakarta last weekend that the MoU on the feasibility study of the coal transporting railway track construction project would be signed tomorrow (today).

The construction of the railway tract will cover eastern lines in Central Kalimantan, starting from Murung Raya-Muara Teweh-South Barito-East Barito passing through Palangkaraya linked to Pulau Pisau.

?That will be for the long-term target. For the first stage, priority will be given to the construction of the railway line linking South Barito to Mengkatip river. From there, the coal will be transported by a barge,? he said.

He said that the cost for the project has yet to be known because he is still waiting for the result of the feasibility study. ?But we target the construction stage will start by the end of 2007,? he said.

According to Teras, several investors from UK, China and India had expressed their interest to invest (on the railway line construction project) but up till now, they have yet to follow up. (*)