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Mining company warned over railway project

A custom law expert has warned state-owned mining company PT Bukit Asam (PT BA) to be mindful in acquiring land to build its 280-kilometer double track railway project scheduled to start next year, so as to prevent it from creating conflict in the community

Oyos Saroso H.N. (The Jakarta Post)
Bandar lampung
Mon, December 3, 2012

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Mining company warned over railway project

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custom law expert has warned state-owned mining company PT Bukit Asam (PT BA) to be mindful in acquiring land to build its 280-kilometer double track railway project scheduled to start next year, so as to prevent it from creating conflict in the community.

Lampung custom law expert Rizani Puspawijaya said over the weekend that the project should be conducted by taking into consideration local issues, as any careless land acquisition moves could lead to conflict.

“Railway track developments that are conducted today are different from those conducted during the Dutch colonial era,” said Rizani, adding that the existing railway tracks in Sumatra, especially the one in Lampung, were built by the Dutch in 1905.

At that time, Rizani said, the project was carried out with the agreement of local community figures. There was no need for land acquisitions because the people whose land was included in the project had given their support. “They saw a clear interest for the people,” Rizani said.

The land acquisition process, he added, started with a deliberation meeting with heads of the custom communities in Lampung. The project only started when these communities agreed.

“No compensation was given at that time. But people were happy because trains would pass through their regions. They were also employed in the development project,” he said.

PT BA plans to build 280-kilometer double railway tracks connecting Tanjung Enim (South Sumatra) and Tarahan Port in Bandar Lampung (Lampung) to transport coal.

Lampung Governor Sjachroedin ZP confirmed that the license to develop the track had been given to PT BA several months ago. “PT BA initially wanted us to cover the land acquisition, but eventually agreed that the investors would take care of it,” he said.

Scheduled to start in September next year, with operations beginning in 2017, the track is expected to improve the company’s transporting capacity to South Sumatra through Lampung, as well as reducing traffic jams in downtown Bandar Lampung.

PT BA operational director Heri Supriyanto said that once the double track was already in operation, the company would be able to increase its transporting capacity to between 25 million tons and 50 million tons of coal per year.

As coaches carrying the coal go from Natar Station in South Lampung to Tarahan Port through the downtown Bandar Lampung area, they are often blamed for causing traffic congestion in the city.

To realize the US$1.7 billion project, PT BA is cooperating with PT Transpacific Railway Infrastructure and China Railway Engineering.

The general manager of port operator PT Pelindo II’s Panjang branch, Doso Agung, expressed support for the project, saying that it would increase export capacity through Panjang Port. Doso said that CPO from South Sumatra and Lampung so far had been transported to Panjang on trucks, as with the transportation of non-PT BA coal products.

This, he said, was time consuming, expensive and caused damage to the roads the heavy-loaded trucks passed over. “Transporting commodities by train is more economical and causes less damage to the road,” Doso said.

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