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tate-owned rail company PT Kereta Api Indonesia (KAI) says it plans to further develop the freight transportation sector in a bid to help the country reduce the cost of logistics.

KAI finance director Kurniadi Armosasmito said the firm had allocated Rp 7.2 trillion (US$619.2 million) in investment from the fiscal year 2012 to 2014 to expand into goods and container transportation businesses.

The firm has used the investment to buy 600 coaches exclusively for transporting coal, 1,200 container coaches in Java, a well as developing double-track rail networks in Sumatra.

"Currently, 60 percent of our revenue comes from transporting passengers, while 40 percent comes from transporting freight. We aim to increase that number [to 60 percent revenue from freight]," Kurniadi
said as quoted by kompas.com on Friday.

For the transportation of coal, KAI is collaborating with publicly listed state-owned miner PT Bukit Asam.

Bukit Asam plans to increase its annual coal transportation capacity from 10 million tons to 18 million tons in 2014.(nfo)