Three investors eye coal railway projects in Kalimantan

Japanese company Nippon Koei Co. Ltd and two local companies Senong Corporation and PT Transasia Resources have shown their keen interest to build a 500 km - railway to transport coal in Kalimantan, the country's largest coal producing region, Bisnis Indonesia reported on Friday.

Soemino Eko, Director General for Railway Operation at the Ministry of Transportation, said in Jakarta on Thursday that the three companies had submitted their proposal to develop the coal railway in the province.

He said that the two local companies Transasia and Senong would likely cooperate with their foreign partners in building the coal railway while the Japanese company would team up with a local investor to carry out the projects.

Soemino did not give details on the proposed projects.

Earlier Transasia Resources, which is led by Russian investor, plans to build 297-km railway that connect Ampah area in Central Kalimantan to Tanah Laut in South Kalimantan. The consortium has coal concessions in Central Kalimantan.

The consortium in cooperation with Chinese company Shanghai Tuner Engineering Corporation and would raise investment funds from the ICBC Bank to finance the railway project which would link major coal mining sites in the province including Tabalog and Kotabaru. (*)