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KAI to increase freight's share of revenue to 60%
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A PT Kereta Api Indonesia (KAI) freight train pulls cargo in Surabaya, East Java. (Courtesy of State-owned Enterprises Ministry/bumn.go.id)
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tate-owned railway company PT Kereta Api Indonesia (KAI) is targeting its freight business to contribute around 60 percent of its revenue after 2017 by working with more logistics companies.
From its Rp 20 trillion (US $1.53 billion) 2016 corporate revenue target, freight must contribute Rp 5.1 trillion or 25.5 percent. Until August, KAI’s freight business had already collected Rp 3.92 trillion, only 30 percent short of the annual target.
"Next year we are increasing the target for freight business revenue to Rp 6.1 trillion," KAI IT and commercial director Kuncoro Wibowo said after a GE-KAI press conference at Hotel Borobudur in Jakarta on Monday.
The state-owned enterprise is negotiating with private logistics companies to move their truck-based shipments to the rail system. It also aims to increase access to ports and industrial zones.
"We are negotiating with Tanjung Mas (Semarang, Central Java) and Gresik (East Java) ports to extend rail access inside [the port], some buildings still stand in the access way," Kuncoro added.
As the roads become increasingly crowded, more businesses are sending their cargo via rail, according to the latest Central Statistics Agency (BPS) data. Freight trains carried 19.71 million metric tons of goods from January to July this year, the BPS said. The number is a 9.85 percent increase from 17.95 million tons during the same period last year. (evi)
