S. Kalimantan firm to build coal transportation canal
Wednesday, May 30 2001 - 07:30 AM WIB
The debate over the use of public land roads for coal transportation has been going on for some time, and recently, there are demands that each company must build their own roads. Responding to such a controversy, PD Baramarta, a company owned by the South Kalimantan administration, plans to build a canal for coal transportation.
PD Baramarta general manager, Ahmad Zacky Hafidzi, said that his company would build the canal from Cintapuri area in Simpang Empat district to Muara Barito.
"That canal will be used especially to transport coal. When that canal is completed, we will not anymore use public roads (to transport coal)," he said.
When asked about the funding, Zacky said that his company had two alternatives: first, inviting the participation of investors and secondly, borrowing money from the central government.
Currently, he said, his company was conducting a feasibility study for the project so that investors and the central government would be convinced to invest in the project.
"Moreover, a number of investors have been waiting for the results of the study because they want for sure if the project would be profitable or not," he said.
Currently, PD Baramarta use land public roads to transport coal. Previously, it used roads belonging to PT Hasnur to transport its coal, with a fee of Rp 15,000 (US $ = Rp. 11,100) per ton of coal transported per day. But the fee was recently raised twice to Rp 30,000 per ton per day that forced the company to use public roads, especially the South Ring Road with a fee of Rp 5,000 per ton per day.
PD Baramarta has been mining for coals under mining contracts of works as well as coal mining licenses from the central government, with a total acreage of 7,486 hectares.
In conducting the mining activities, PD Baramarta has been partnering with a number of local cooperatives, including those belonging to South Kalimantan police, the South Kalimantan Prosecutors' Office, and local Military Command. In addition, Baramarta has also been working with a number of local companies including, PT Bangkit Adi Sentosa, PT Sungai Pinang Abadi and PT Rahmat Bara Utama. (*)