Land acquisition hampers Bukit Asam?s railway project

The slow process of land acquisition has hampered the construction of a new railway track linking PT Bukit Asam?s mining site in Tanjung Enim, South Sumatra to coal terminal in Tarahan, Lampung.

"The land acquisition hampers the railway project, ? Bukit Asam?s corporate secretary Achamd Sudarto said during a hearing with the Commission VII of the House of Representatives (DR) on Monday.

He said China Development Bank (CDB) would provide loans up to about US$1.3 billion to finance the 307-km railway track. ?There is no problem with the funding for the project,? he said.

The railway which will be used to transport Bukit Asam?s coal from its mining areas in Tanjung Enim to the coal terminal in Tarahan will be built and operate by PT PT Bukit Asam Transpacific Railway (BATR), a joint venture between Rajawali Group through its subsidiary of Rajawali Asia Resources which holds 80 percent of share with PT Bukit Asam Tbk and China Railway Group Limited holding 10 percent each of the remaining.

The railway project was expected to start operation at the end of 2015 or April 2016. The project will increase the capacity of the existing railway by 25 million tonnes a year to 47 million tonnes from 22 million tonnes at present. (edi)