S. Korean firms sign deal to build Kalimantan coal railway

South Korea's POSCO and Canatect Ltd signed a memorandum of understanding with PT Kereta Api Indonesia, according to the Detikcom news portal.

Transport Minister Hatta Radjasa was quoted saying the railway line would be built mainly to transport coal in East Kalimantan province.

No further details were available and a transport ministry spokesman declined comment.

The reported deal comes on the first day of a visit to Indonesia by a large South Korean delegation made up of business leaders and government officials to follow up on an agreement to forge a strategic partnership between the two countries.(*)