Thu, 09 Jun 1994

Firm to operate railway

BANDUNG (JP): PT Lorinta, a private company, will soon operate express trains between Jakarta and the East Java capital of Surabaya, reducing travel time to nine hours, an official says.

"The state-owned railway company Perusahaan Umum Kereta Api (Perumka) has invited Lorinta. The two parties are now completing a final negotiation," Director of Land Transportation Soejono of the Ministry of Transportation told reporters.

He said Perumka will have interest of 70 percent and Lorinta 30 percent in the railway service, which will be launched next year, the 50th anniversary of the country's independence.

Perumka's president, Anwar Supriyadi, said that the planned service, to be called JS950, will cost Rp 45 billion (US$20.86 million).

Anwar said that the investment for the project includes the procurement of new engines, cars and the doubling of railway tracks in certain places.(pet/icn)