Bonto-Adhikarya to build railway line

Bonto-Adhikarya to build railway line

JAKARTA (JP): Local contractor PT Bonto Buleang Utama signed a
cooperation agreement yesterday with state-owned construction
company PT Adhikarya to build a US$300-million railway to
transport coal in East and South Kalimantan.

The construction is scheduled to start in August this year and
take two years to complete, Bonto president Andy Z. Ansar Sufajar
told reporters.

He said the project was owned by Newman, an American
infrastructure company, which had signed a build-operate-transfer
contract with the government.

But he did not know how long Newman would operate the railway
for until it had to transfer it the government.

Andy said Newman had chosen Bonto as the contractor for the
project and Bonto later asked Adhikarya to jointly develop the
project.

"We chose Adhikarya as our partner because we think this
company is well-experienced in construction," Andy said.

According to Andy, the 125-kilometer railway will connect the
two main coal ports in East Kalimantan -- Tanjung Batu in
Samarinda and Kariangau in Balikapapan -- passing close to all
the main mining sites in East and South Kalimantan.

He said the railway would facilitate the transportation of
coal from both provinces' hinterland to the two ports.

At present miners in both provinces mainly move their coal on
small ships via rivers to Tanjung Batu and Kariangu, whence the
coal is shipped to its next destinations.

The transportation becomes difficult when river water levels
drop during dry season.

"The railway network will make the transportation of coal
much, much easier," Andy said, adding that the loading capacity
of each of the two coal ports would be increased to 300,000 tons
from 60,000 tons each at present.

Andy said the development of the railway would require 400
workers and Bonto would use local materials.

The idea of building the railway network was hatched four
years ago by then director general of mines Kuntoro
Mangkusubroto, who is now mines and energy minister, he said.

Indonesia produced 51.4 tons of coal in 1996/1997, 42 percent
of which was exported.

Coal is mined in Central and South Sumatra and South and East
Kalimantan.

The majority of the country's mining companies currently
operate in Kalimantan which has better-quality coal deposits than
Sumatra. Most coal from Kalimantan is exported.

Big coal companies operating in South and East Kalimantan
include PT Arutmin Indonesia, PT Utah Indonesia, PT Adaro
Indonesia, PT Kaltim Prima Coal, PT Kideco Jaya Agun and PT
Tanita Harum. (jsk)