RMK develops new coal railway in South Sumatra

By Tri Subhki R

PT RMK Energy, a coal logistic services company, is developing new lines of coal railway in South Sumatra Province. Currently, the company, through its subsidiary company PT Gumay Prima Energi (GPE), in cooperation with state-owned railway firm PT Kereta Api Indonesia (KAI), operates coal unloading facility at Simpang Station?s Sepur 9.

Tony Saputra, President Director of PT RMK Energy, said to petromindo.com Monday that RMK is developing its own two new coal railways, so-called Sepur 10, at its concession near to the Simpang Station. ?We have already obtained required permits to develop the two new coal railways in our concession,? he said on Monday.

Tony added that the new two kilometers length railways will be dedicated for increasing demand of coal railway transport in South Sumatra Province. ?The investment of this project is about Rp35 billion and is expected to be ready in November this year,? he said.

The current operating coal unloading facility serves local mining companies namely PT Bara Alam Utama (BAU) and PT Muara Alam Sejahtera (MAS). The Sepur 9 coal unloading facility serves 300,000 tons of coal per day.

Tony unveiled that BAU and MAS want to increase their coal unloading volumes. Moreover, PT Great Golden Borneo (GGB) has signed contract with RMK to transport 1.5 million tons using the RMK?s railway and will start by the end of 2017.

KAI increases the coal transport capacity from Lahat to Simpang station up to 4.5 million tons this year from 3 million tons last year. Simpang station is located 15 kilometers away from Kertapati Port, Palembang.

Due to train traffic congestion that makes coal unloading in the Kertapati Port takes too much time, KAI develops coal unloading facility at Simpang Station, in cooperation with GPE as the operator of unloading activities.

Editing by Reiner Simanjuntak