KAI plans to expand coal transport in S. Sumatra
Tuesday, November 29 2016 - 01:15 AM WIB
State-owned railway firm PT Kereta Api Indonesia (KAI) is finalizing an agreement with six coal miners in Lahat Regency, South Sumatra, to transport coal to the Kertapati port in the province, Antara reported.
The news portal quoted Head of Public Relations at KAI southern part of Sumatra region office Aida Suryati as saying the agreement is expected to be realized in 2017, which will expand the company?s coal transport service in South Sumatra.
He said that amid the lingering weak coal price, coal miners in South Sumatra are now looking for the most efficient coal transport system, which is via railway instead of trucks.
KAI currently mostly transport coal produced by IDX-listed coal giant PT Bukit Asam Tbk (PTBA) from Lahat to Kertapati port in South Sumatra Province, and from Tanjung Enim to Tarahan port in Lampung Province.
He added that KAI has also recently obtained contract to transport 3 million tons per year of coal produced by PT Gumay Prima Energi, a subsidiary of PT Royaltama Mulya Kencana, from Lahat to the Simpang station in Ogan Ilir Regency, in South Sumatra. (*)