KAI to transport 7.1 million tons of coal in 2007

State railway firm PT Kereta Api Indonesia (KAI) will invest around Rp 200 billion to buy new 9 locomotives and 50 coaches in a bid to increase its coal delivery volume for state coal mining firm PT Tambang Batubara Bukit Asam (PTBA), Suara Karya reported Wednesday.

KAI?s president director Ronny Wahyudi said Tuesday that KAI planned to transport 7.1 million tons of coal in 2007 or higher compared with 6.5 million tons last year.

PTBA, using KAI service, delivers most of its coal by train from Tanjung Enim either to the Tarahan coal terminal in Lampung province, about 420 kilometers (km) from Tanjung Enim, and or to the Kertapati jetty port in Palembang, about 200 km from the coalmine.

Under an agreement signed in August 2006, PTBA agreed to pay Rp 230 (full amount) per ton kilometer not including VAT. The price was set under coal delivery volume of 7.6 million tons to Tarahan and about 2.0 million tons to Kertapati in 2007.

Ronny added that KAI would also replace some 40 km of railway track in South Sumatra. (*)