French firm plans to develop railroads in Aceh, Surabaya<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
As the government has been concentrating on further developing
\nthe rail network on Java, French rail company SNCF International
\nplans to restore the network connecting Banda Aceh and Medan, as
\nwell to explore a possibility of a commuter line in Surabaya.<\/p>\n
As a token of its seriousness, SNCF chairman and chief
\nexecutive officer Jean-Pierre Loubinoux signed a memorandum of
\nunderstanding with Minister of Transportation Hatta Radjasa on
\nTuesday to conduct a technical and feasibility study for the
\nprojects.<\/p>\n
The study will be funded by the French government in the form
\nof grants worth about 1 million euros for each project.<\/p>\n
\"We are eager to open up a railway business in Indonesia.
\nAfter the completion of the study, we will invite other investors
\nto become partners with us on the project,\" Loubinoux told a
\npress briefing on Tuesday at the two-day Infrastructure Summit.<\/p>\n
On the Aceh rail project, he added, the company would focus on
\nrestoring the 400-kilometer network stretching from Banda Aceh to
\nMedan. The railroad itself, built by the Dutch colonial
\nadministration, actually survived the Dec. 26 quake and tsunami,
\nthat killed over 100,000 people in Aceh and devastated most of
\ninfrastructure.<\/p>\n
In 1999, president B.J. Habibie kicked off a Rp 3.5 trillion
\n(about US$377 million) railway project connecting Banda Aceh and
\nLangsa in southeastern Aceh with Asian Development Bank
\nassistance in conducting a feasibility study for the project.<\/p>\n
The technical and feasibility studies for the Aceh railway
\nproject are expected to be completed within six months while for
\nthe Surabaya project is to be completed by the end of this year
\ndue to the complexity of the areas.<\/p>\n
SNCF was established 50 years ago from a merger between
\nseveral French state rail companies with a number of private
\nfirms.<\/p>\n
The company has been involved in a number of projects in Asia,
\nincluding Taiwan and South Korea.<\/p>\n
SNCF refused to disclose the amount of the projects but an
\nofficial with the transportation ministry revealed that the
\ninvestment could be around $1 billion.<\/p>\n
Data from the ministry says there are currently 7,833
\nkilometers of rail networks available in the country but only
\nsome 4,411 kilometers are operational. Over 3,100 kilometers are
\nin Java and over 1,200 kilometers are in Sumatra.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie said the
\npolicy of expanding the railway network in Sumatra was to serve
\nall provinces and other potential regions by improving the
\nexisting infrastructure system and setting up new networks.<\/p>\n
The government is currently drafting a bill on railroads,
\nwhich will further enhance the role of local administrations and
\nthe private sectors to help develop the facilities.<\/p>\n
At present, PT Kereta Api Indonesia (KAI) has a monopoly to
\nregulate and operate the nation's rail networks, but has come
\nunder criticism for financial difficulties faced by the company
\ndue to corruption.<\/p>\n
Due to the lack of funds, the company has only been able to
\ngrow by an average of 2.55 percent per year in terms of providing
\nnew facilities and expanding the network.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/french-firm-plans-to-develop-railroads-in-aceh-surabaya-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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