PTBA urges KAI to transport coal according to agreement

State coal miner PT Batubara Bukit Asam (PTBA) said on Tuesday it would try to persuade state railway operator PT Kereta Api Indonesia (KAI) to transport its coal from South Sumatra to Lampung as recently agreed by the two parties.

?We will try to meet with KAI leaders as soon as possible. Hopefully, they will be more open to us,? PTBA president director Ismet Harmaeni told Petromindo.com.

In October, PTBA and KAI signed an agreement under which the railway operator will charge PTBA Rp37,000 (US$=Rp8,800) for each ton of coal transported from PTBA?s coal mining sites in Mura Enim, South Sumatra, to Lampung in the southern tip of the island.

From Lampung, the coal will be shipped to Suralaya power plant in Banten on Java Island. So far, KAI has reportedly carried up to 6.5 million tons of coal annually from Muara Enim to Lampung.

The two companies also agreed that the Rp37,000 tariff will be effective only if KAI transports 8.5 million tons of coal annually, and that the tariff will be lowered if less coal is transported.

State Minister of State Enterprises Laksamana Sukardi issued a ruling to support their agreement.

However, KAI?s operation director Omar Berto said the tariffs of transporting PTBA?s coal were too low in terms of international efficiency standards as shown by World Bank?s analyses. (godang)