KAI rejects offer to transport coal from Jambi to W. Sumatera

Saturday, October 30 2004 - 01:48 AM WIB

State owned railway operator PT Kereta Api Indonesia (KAI) has technically rejected an offer from a coal mining company to transport coal from Muara Bungo in Jambi to Teluk Bayur port in West Sumatera through Sawahlunto, Bisnis Indonesia reported on Saturday.

"It is quite difficult to accept because our transportation capacity can only meet 25 percent of the order," said the spokesman for the West Sumatera office of the railway operator, Zulkifli Kiram.

The Jambi-based coal mine company, which the paper did not identify, requested KAI to transport one million ton of coal per year from Muara Bungo to Taluk Bayur port in West Sumatera through Sawahlunto.

He said that KAI stopped coal transportation activities from Sawahlunto to Padang two years ago due to the halt of coal mining activities in Sawahlunto. "A larger part of the freight carts and the rail tracks, as well as personnel have been relocated to other areas after the halt of the operation," he said.

Zulkifli said that KAI suffered a loss of Rp 1.8 billion a month or about Rp 21.6 billion a year due to the halt of the Sawahlunto service. (*)

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