Indonesian Political, Business & Finance News

Railway system planned for East Kalimantan

| Source: JP

Railway system planned for East Kalimantan

JAKARTA (JP): PT Senong Corporindo, a joint venture between
Indonesian and Dutch companies, will construct a railroad track
in East Kalimantan for coal and wood transportation.

The joint venture will cooperate with two Dutch consulting
firms, Zenits Cort Consulting Engineers BV and Infraneth to
construct the railway.

H.A. Senong, the president of Senong Corporindo, said in
Samarinda that constructing the track linking Tanjungbaru in
Balikpapan and Sibulu in Kutai regency will cost around US$170
million.

The 120-kilometer track, which will become the first railway
system in Kalimantan, will be used to transport coal and wood
from Sibulu to Tanjungbaru port in Samarinda, the capital of East
Kalimantan province.

Transporting coal and wood from Kutai regency to Tanjungbaru
port is currently handled by trucks as well as small cargo ships
plying the Mahakam river, which divides the two areas.

West Kalimantan Governor Ardans said the construction of the
railway track will be the best alternative to develop
transportation infrastructures in the province because improving
the condition of the roads will be much more costly, and larger
ships will not be able to pass through the bridge linking the two
areas.

Most wood and coal are presently transported by small ships.

Senong said the planned railway system will not only cut
transportation costs but will also increase cargo capacity. (hen)

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