MME: Coal hauling via railway to commence end 2016

By Cepi Setiadi

Coal mining company PT Manambang Muara Enim (MME) said that its cooperation project with state railway firm PT Kereta Api Indonesia (PTKAI) for hauling coal from Muara Enim to Palembang in South Sumatra is expected to commence by the end of 2016.

MME Operational Director Edi Wibowo told Petromindo.com on Monday that currently the company is still reviewing the best options for the final design of the required loading station. In addition, according to Edi, there are several options for loading station location.

Edi added, principally PT KAI hopes that the project can be started as soon as possible. "They expected to start the project in April and to be operated by June 2016, but we estimate that it possibly (to start) by the end of 2016," he said, adding that the company would have to prepare the construction permit first.

Edi said that through this project, PT KAI will provide slot for transporting about 3 to 6 million tons of MME?s coal which will be delivered from Muara Enim to Simpang Station, Musi Banyu Asin, South Sumatra, with total distance about 130 kilometers.

?From Simpang Station the coal will be hauled by truck to the RMK?s jetty with the total of 7 kilometers distance,? Edi said, adding that if the coal is hauled from the site to the jetty by trucks, the distance is about 250 kilometers. ?By using the railway, the hauling cost will be more economic and significantly decrease rather than using trucks,? he said.

Editing by Reiner Simanjuntak