Thursday, September 6, 2007

PTBA & PT KA Agrees to Coal Railways Project worth IDR3.5 Trillion

PT Tambang Batubara Bukit Asam Tbk (PTBA) and the State Railways Enterprise (PT KA) agree to the proposal on the development of coal railways project worth IDR3.5 trillion in South Sumatra.

The construction of the coal railways project aims to boost the coal carrying capacity from Tanjung Enim to Tarahan (Lampung) and from Tanjung Enim to Kertapati (South Sumatra) and to cut the distance from 416 kilometers to 316 kilometers. PT KA will start seeking funds by issuing bonds worth at least IDR500 billion next year.

The increase in PTBA's sales volume will depend on the increase in railways carrying capacity. In 2007, the carrying capacity is targeted at 9 million tons, up by 9% from 8.3 million tons in 2006.

PT KA also plans to improve and buy some facilities and infrastructures, such as replacing some train coach spareparts and repairing 30 km long railways track.

To meet the target to have the carrying capacity of 11.3 million tons in 2008, around nine locomotives and 50 coal train coaches are needed. In the meantime, it takes 10 additional locomotives and 200 train coaches to boost carrying capacity optimally.

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