Japanese firms plan to build underground railway track for coal transportation

Two Japanese companies Nippon Koei Co Ltd and Sojitz are studying the possibility of building an electric underground railway track in South Sumatra to support the coal transportation in the province, Bisnis Indonesia reported on Monday.

Teddy Setiawan, an executive of the local partner of the Japanese companies, said in Jakarta last week that the construction of the 70 km-underground electric railway system, which would link Musi Rawas regency in South Sumatra and the sea port in Bengkulu province, would cost at least Rp 4 trillion.

He said that the planned railway system would be used to transport low-calorie coal from Musi Rawas regency and its surrounding areas for overseas shipment, particularly to Japan.

According to him, the planned electric railway track will be designed to be able to transport between 10 million tons and 25 million tons of coal a year. He said that its construction is an integral part of the development of the steam power plant in the regency which will be built by a consortium of Japanese companies including Sojitz, Kobelco Ltd, Babkock Hitachi and Nippon Koei Co.

State owned coal mining company PT Batubara Bukit Asam is the only coal producer in South Sumatra at present. It transports about 10 million tons of coal a year through Palembang-Lampung railway system to its Tarahan coal terminal in Lampung before being shipped to both local and overseas buyers. (*)