New regulation allows coal railway to be used for other commodities
Monday, March 27 2017 - 01:21 AM WIB
Petromindo|Khalsa
President Joko Widodo has issued a new Government Regulation No 6/2017 that would allow the planned coal railway project in East Kalimantan Province to be used to transport passengers and other commodities, according to East Kalimantan Governor Awang Faroek.
Awang was quoted as saying by Antara Sunday that this is the first time in the country?s history for a president to approve a request from a governor to change a government regulation. The Government Regulation No 6/2017 replaces Government Regulation No 56/2009.
He said that the new regulation will allow railways to be developed in East Kalimantan to be used to transport passengers and various commodities produced in the province such as crude palm oil, not only coal, which in turn would help accelerate investment activities.
As has been previously reported Russian investors Blackspace and Russian Railways plan to develop two railway projects in East Kalimantan, initially to transport coal.
Reports said that Blackspace in early December of last year, started construction process of its railway project with a ground-breaking ceremony held at the Maloy Batuta Trans Kalimantan Special Economic Zone in Kutai Timur Regency. Current progress of the project is still not clear.
A report said last year that Russian Railways had yet to start construction as the company will first focus on developing a port in Panajam Paser Utara Regency.
Awang that construction of the two railway projects: southern and northern tracks were ready. The 203-km southern track will link Panajam Paser Utara and Kutai Barat regencies, while the 217-km northern track will Lubuk Tutung in Kutai Timur Regency and Tabang in Kutai Kartanegara Regency. (*)