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Russian firm to develop Samarinda-Balikpapan rail track
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Transportation Minister Budi Karya Sumadi (second left) with House of Representatives members in Jakarta, in this 2016 file photo. (thejakartapost.com/Anton Hermansyah)
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Russian company is interested in developing a passenger and logistics rail track linking Samarinda and Balikpapan in East Kalimantan, a top official said Tuesday.
Transportation Minister Budi Karya Sumadi said an executive of Russian transportation and infrastructure firm JSC Russian Railways (RZD) had expressed interest during a meeting with the ministry last week.
"They are interested in [developing] a rail track connecting Balikpapan to Samarinda. Since [the demand of] passengers and logistics are there, [the project] will make the transportation there become more efficient," Budi said in Jakarta.
RZD has secured a permit to develop a rail track in the province, with the original intent to transport coal. However, with the uncertainties relating to coal prices, the company is now looking to use the track to transport passengers instead.
He also said the Indonesian government welcomed the Russian company's participation in infrastructure projects in the country due to the government's budget constraints. (dmr)
