PTBA, Indonesia Power to form joint venture with railway operator KAI

The state owned coal-mining company PT Tambang Batubara Bukit Asam (PTBA) and electricity firm Indonesia Power will form a joint venture with railway operator PT Kereta Api Indonesia (KAI) to develop a railway track for the coal company's coal transportation, Investor Daily reported on Friday.

PTBA declined to disclose the details of the cooperation plan.

The company said earlier that it would need at least Rp 1.6 trillion in fresh funds to buy new freight cars and to improve the condition of the railway track that links its mining site in Tanjung Enim in South Sumatra and its coal terminal in Tarahan, Lampung Province.

PTBA delivers most of its coal by train from Tanjung Enim either to the Tarahan, about 420 kilometers (km) from Tanjung Enim, and or to the Kertapati jetty port in Palembang, about 200 km from the coalmine. From Tarahan, the coal is shipped to the Suralaya power plant complex in Banten, while from Kertapati, the coal is shipped by barges through Musi river to vessels anchored at the Bangka Straits for shipment.

The improvement of the railway condition is expected to enable PTBA to transport at least 12 million tons of coal a year to the Tarahan terminal, as compared to just about 7.5 million tons at present. (*)