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)