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Jakarta Post

Bukit Asam set to develop railways to boost annual coal freight

  • Viriya P. Singgih

    The Jakarta Post

Jakarta   /   Mon, July 31, 2017   /   01:51 pm
Bukit Asam set to develop railways to boost annual coal freight Coal freight trains (kompas.com/File)

State-owned coal miner PT Bukit Asam plans to boost the annual capacity of its coal freight distribution to 65 million tons by 2023, from a capacity of only 10.23 million tons as of June, said a company executive recently.

“In total, we have coal reserves of around 3.3 billion tons. It’s not difficult for us to mine those reserves. However, the problem is to transport the coal to our customers. That’s why it is important for us to boost the capacity of our coal freight,” Bukit Asam president director Arviyan Arifin said recently.

To meet its target, Bukit Asam will team up with state-owned railway operator PT Kereta Api Indonesia (KAI) to upgrade its two existing railways in South Sumatra.

The first route pegged for the upgrade leads from the Bukit Asam mine in Tanjung Enim to the Kertapati coal port, and will have an annual capacity to transport 5 million tons of coal by 2019.

The second leads from Tanjung Enim to Tarahan coal terminal, which will have an annual capacity to transport 25 million tons of coal once the upgrade is completed in 2020.

Read also: Bukit Asam's profit skyrockets on higher coal price, greater efficiency

The company also plans to develop three new railways, to the Prajin and Kramasan coal barge ports in South Sumatra and to Srengsem port in Lampung.

The new railways to Prajin and Kramasan will have a capacity of 10 and 5 million tons of coal, respectively, and are slated for completion in 2022. Meanwhile, the one heading to Srengsem will have a capacity of 20 million tons and is expected to be complete by 2023. (bbn)