T

he Transportation Ministry signed an agreement with state infrastructure financing company PT Sarana Multi Infrastruktur (SMI) on Thursday to kick-start a railway project that will link Soekarno-Hatta International Airport and Manggarai Railway Station in South Jakarta.

The project has been abandoned since 2005 due to a combination of problems ranging from land acquisition to financing.

With all the obstacles, the project will be offered for tender in 2013 in order to accelerate construction, according to the Transportation Ministry’s director general for trains, Tundjung Inderawan.

“This is one of the vital national projects and we have to work harder and faster because we badly need a strategic solution to accommodate travelers to the airport. Any company that can offer Indonesia the best is welcome to take part in the tender,” Tundjung said.

He said the railway project would help ease traffic congestion between Jakarta and Cengkareng, Banten, which worsened every year as passenger traffic through the airport currently stood at 44.3 million per year while its maximum capacity was only 22 million.

According to the National Development Planning Board and the Committee for Infrastructure Development Policy (KKPPI), the project may require a Rp 10.2 trillion (US$1.13 billion) investment, far higher than the Rp 4.6 trillion estimated in 2007.

The figure swelled from the original estimate due to several changes, including the construction of a double-track line instead of a single track that was to overlap with the existing railway line, and the possible construction of shopping malls to cater to passengers.

Both the ministry and SMI will again conduct a feasibility study of the 33-kilometer railway.

The railway track will start at Manggarai and pass through Dukuh Atas in Sudirman, Tanah Abang, Angke, Pluit and the airport toll road all the way to the airport.

According SMI president director Emma Sri Martini, SMI will conduct the feasibility study from December 2011 to 2012.

“The construction is expected to start in early 2014,” Emma said.

The project will be conducted under a public private partnership scheme, with the government slated to finance 30 percent of the project and private investors the remaining 70 percent. Emma said the railway project would see international-scale bidding.

A number of foreign and local companies have long expressed interest in taking part in the bidding, which was supposed to be held in 2009.

The companies include China Harbour Engineering, Japan’s Mitsui and state railway operator PT KAI’s Railink.

Transportation Minister E.E. Mangindaan blamed the Finance Ministry for the failure to open up the bidding process earlier due to uncertainty in the financing and the return on investment.

“This is about financial issues and it is the Finance Ministry that makes the decision,” he said.

Another daunting problem is land acquisition as the railway will pass through densely populated housing areas. “Land acquisition is still in process, but we’ve seen progress,” said Tundjung.

Minister Mangindaan expected the agreement would ensure the smooth running of the project as better infrastructure would be needed in order to achieve higher economic growth.

“Better infrastructure will increase our international competitiveness. We have no excuse for not executing this project based on the plan that we’ve made today,” Mangindaan said. (nfo)