Nani Afrida, The Jakarta Post, Jakarta | Tue, 03/30/2010 7:24 PM
South Korean-based company Doosan Engineering & Construction is interested in investing in double track railway construction in South Sumatra to transport coal, an official told reporters in Jakarta on Tuesday.
“We have met Doosan. The company is interested in constructing a double track railway in South Sumatra,” said Tundjung Inderawan, the transportation ministry’s director general for trains.
The railway track, Tundjung said, would be part of a distribution line for coal produced by state owned PT Bukit Asam.
“There is no feasibility study yet as we are still discussing the plan,” he said.
Tundjung said the company was also looking for a local partner for the upcoming investment. He said that railway operator PT Kereta Api and state owned train company PT Inka were the most probable partners for Doosan.
“I think it is okay to construct double track besides the existing track that belong to Kereta Api, because the Bukit Asam president director has told me that coal production will be increased as long as the railway transportation is available,” he said.
Bukit Asam plans to produce 14 million tons of coal this year up from 11.6 million tons in 2009, and states that its output can grow in line with improvements in the railway system for transporting coal.
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