Indonesian state-owned mining company PT Bukit Asam plans to develop railway infrastructure in order 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. To meet its target, Bukit Asam will collaborate with state-owned railway operator PT Kereta Api Indonesia (KAI) to upgrade its two existing railways in South Sumatra.
The first line slated for upgrade runs 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 runs from Tanjung Enim to the Tarahan coal terminal, and it will have an annual capacity to transport 25 million tons of coal once the upgrade is completed in 2020.
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. The rail line heading to Srengsem will have a capacity of 20 million tons and is expected to be complete by 2023.
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