South Sumatra plans $1b coal railway

South Sumatra Governor Alex Noerdin said the province would join hands with investors to build a 270-km coal railway from Lubuk Linggau to Tanjung Api-Api port.

Noerdin said that the project would require investment of US$1 billion and would be able to transport 50million tonnes of coal per annum to the port in four years? time.

Noerdin did not say the investors? names, but UAE firms Ras Al Khaimah Investment Authority (Rakia) and RAK Minerals and Metals Investments (RMMI) had signed MoUs with South Sumatra province to build billion dollars infrastructure project in South Sumatra.

South Sumatra is rich with huge coal resources but is constrained by lack of transportation facilities.

State coal mining firm PT.Tambang Batubara Bukit Asam (PTBA), which also mines coal in South Sumatra, plans to expand its existing South Sumatra to Lampung railway from 10MTPA currently to 20MTPA and another separate railway project from South Sumatra to Lampung with annual capacity of 20MTPA. (godang)