PTBA, KAI asked to cooperate to double coal transportation capacity

The government has given one month to coal miner PT Tambang Batubara Bukit Asam Tbk (PTBA) and railway operator PT Kereta Api Indonesia (KAI) to realize a cooperation agreement to double KAI's coal transportation capacity in 2008, Bisnis Indonesia and Tempo dailies said on Wednesday.

 

Currently,  PTBA and KAI are in the process of drawing up the draft agreement, according to the papers.

 

Minister of State Enterprises Sofjan Djalil said in Jakarta Tuesday that a cooperation between the two state companies was needed to overcome problem pertaining to the shipment of coal from PTBA's mines in South Sumatra.

 

Sofjan explained that currently PTBA could only ship 10 million tons of coal per year. Whereas, the coal reserves in the mining operated by PTBA reach two billion tons. Under the condition, PTBA cannot perform maximally, he said.

 

Meanwhile, KAI’s president director Ronny Wahyudi said that additional 10 locomotives and 200 wagons were needed to boost the coal transportation. “Currently, we only have nine locomotives and 50 wagons and to own additional locomotives and wagons, we need Rp 800 billion,” he said.

 

The capacity of coal transportation was expected to increase in stages. “Currently, the coal transportation capacity is eight million tons and is expected to rise to 10 million tons and to 12 million tons,” he said.

 

PTBA’s corporate secretary Eko Budhiwijayanto said that both PTBA and KAI would meet in Palembang, South Sumatra on Thursday to discuss sources of funds for the project. (*)