PT BA to begin construction of 600-km coal tunnel in 2006
Tuesday, July 26 2005 - 02:09 AM WIB
PT BA 's president director Ismeth Harmaini said in Jakarta on Monday that the construction of the massive tunnel which would cost between US$500 million and US$600 million to build would be part of the coal mining company's ambitious program to further its coal exports.
With the construction of the new tunnel, PT BA would have another alternative to ship its products both to local and overseas buyers. At present, the company relies on the Palembang-Lampung railway track to transport its coal to its main coal terminal in Tarahan, Bandar Lampung. The poor condition of the railway track has often hampered coal transportation from its mining site in Tanjung Enim to the Tarahan coal terminal.
Ismeth said that the feasibility on the construction of the tunnel which were jointly conducted by a consortium of PT Trimitra, PT Transcoal, Techint of Australia and the South Sumatra government had been completed.
He said that the tunnel would be able to accommodate a cargo ship with a capacity of 5,000 tons. As part of the project, PT BA would also build a dry terminal in Tanjung Api Api and a sea terminal in the Bangka strait which would be used to received the coal prior to the shipment.
According to Ismeth, a number of foreign companies have expressed interest to take part in the project. But the company preferred to cooperate with an Italian company to develop the tunnel project. The company has committed to investing about US$400 million in the project. (*)