PTBA plans Rp 1.8t investment for railway<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
State-owned coal mining firm PT Tambang Batubara Bukit Asam
\n(PTBA) plans a huge investment next year to improve the railway
\nfacilities used to transport its coal products.<\/p>\n
PTBA president Ismet Harmaini said the company, along with
\npower firm PT Indonesia Power and state railway firm PT KAI, had
\nplanned to invest some Rp 1.8 trillion (about US$200 million) to
\nenhance railway facilities in South Sumatra and Lampung.<\/p>\n
Ismet said improvement in the railway would help PTBA expand
\nits production output and prevent disturbance in distribution
\nchains due to the poor condition of the railway system and
\nassociated facilities.<\/p>\n
\"Transporting coal by train has always constituted an obstacle
\nfor the company in increasing production and meeting market
\ndemand,\" Ismet said before a hearing of the House of
\nRepresentatives Commission IX for energy and mining on Monday.<\/p>\n
The investment will cover costs for constructing new railway
\nlines, replacing and repairing old railway lines, and providing
\nnew locomotives and coaches.<\/p>\n
PTBA has often faced problems in delivering its coal from
\nTanjung Enim mine in the inland area of South Sumatra to the
\nTarahan port in Lampung.<\/p>\n
PTBA's coal production target for this year has been revised
\ndownward to 9.9 million tons from 10.2 million tons, because a
\ncollapsed railway bridge has hampered coal delivery from the mine
\nto the port.<\/p>\n
Transportation problems have also forced the company to reduce
\nits coal supply to the Suralaya power plant, which in turn has
\nreduced the power plant's capacity to supply electricity into the
\nJava-Bali power grid.<\/p>\n
Ismet said the company was currently still discussing with
\nIndonesia Power, the owner of Suralaya plant, and KAI, the
\nrailway authority, on the respective investment amount of each of
\nthe companies.<\/p>\n
\"If we are burdened with the greater portion of the
\ninvestment, we will need to issue bonds or seek loan facilities,\"
\nsaid Ismet, adding that the work for improving the railway
\nfacilities would start next year.<\/p>\n
The publicly listed company is seeking to produce some 10
\nmillion tons of coal next year, which is slightly higher than
\nthis year's target of 9.9 million tons. The company produced
\n10.03 million tons of coal in 2003.<\/p>\n
The company estimates that sales revenue will increase by 114
\npercent to Rp 6 trillion this year due to higher coal prices
\nworldwide. Net profit is also expected to jump higher by 139
\npercent to Rp 341 billion.<\/p>\n
PTBA shares ended ... on the Jakarta Stock Exchange on Monday.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ptba-plans-rp-18t-investment-for-railway-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }