Kalimantan?s coal railway project to begin next year

The construction of a 300-kilometer railway linking major coal producing areas Puruk Cahu-Bangkuang and Lupak Dalam in Central Kalimantan is expected to begin next year, Kontan reported on Wednesday.

Bastari Pandji Indra, the director for public private partnership (PPP) at the national planning board (Bappenas) said in Jakarta on Tuesday that the coal-railway would be part of the Trans Kalimantan railway system to be developed on the natural resources rich island.

He said that the Puruk Cahu-Bangkuang and Lupak Dalam railway would be built under PPP scheme with total investment of about Rp 20 trillion (about US$2.07 billion). The private sector will provide about 90 percent of the investment needs, while the government will contribute 10 percent in the form of land.

Bastari said that the railway was initially designed to have 180-KM route linking Puruk Cahua and Bangkuang. ?But it has been expanded to Lupak Dalam rising the length to 300 KM,? he added.

Four companies including Bakrie Infrastructure, Itochu, China Railway and a Dubai-based company are taking part in the tender for the construction of the railway. The winner is expected to be announced early next year.

The physical construction, which is expected to begin early in 2014, is scheduled for completion in 2018. (*)