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Released November 20, 2013 | MANILA, PHILIPPINES
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Researched by Industrial Info Resources (Sugar Land, Texas)--Indonesia, the world's second-largest exporter of coal, will build down an estimated $6 billion worth of coal railways and transport facilities to improve its transport network.
At the heart of the massive upgrade are three coal railway projects that span about 500 kilometers. The projects are to be built by PT Indika Energy Tbk (INDY:JK) (Jakarta Indonesia), MEC Coal (Jakarta), and PT Bukit Asam Transpacific Railway (Jakarta).
Under landmark 2009 legislation dubbed Indonesia's "Master Plan for the Acceleration and Expansion of Economic Development" (MP3EI), the private sector is allowed to construct transportation systems for the mining and agriculture industries. The legislation was a bid to accelerate development via better infrastructure and new economic corridors.
Half of the estimated value of this project will be jointly developed by PT Indika Energy with its EPC China Railway Group Limited (Beijing, China). The $3 billion leg of the upgrade involves building 100 to 120 kilometers of heavy-haul railway-transport systems, which will deliver 20 million tons of coal from PT Indika's Palangkaya coal mine to Jabiren coal terminal.
MEC Coal is also expecting to commence construction early in 2014 for its 130-kilometer rail project in East Kalimantan. MEC Coal's railway system is vital for transporting coal to its port and power plant, as well as products like alumina and supplies for its alumina refinery in Muara Wahau.
PT Bukit Asam Transpacific Railway, a subsidiary of state coal miner PT Bukit Asam (Persero) Tbk (PTBA:JK) (Tanjung Enim, Indonesia), is acquiring coal mines as part of its expansion plan and railway projects to increase production capacity in its Tanjung Enim mine. The 250-kilometer Tanjung Enim coal railway project will transport 25 million tons of coal from multiple concessions owned by PT Bukit Asam to the Tarahan Coal Terminal.
The PT Bukit Asam Transpacific Railway was supposed to be the first major coal railway under the private sector, after the Indonesian government released MP3EI. However, Adani Group (BSE:512599) (Ahmedabad, India) pulled out from its partnership with PT Bukit Asam in mid-2013 due to low coal market prices and rising operational costs. The proposed railway would have been able to transport 35 million tons of coal per year.
Under way is the $2 billion Pulau Baai-Muara Enim coal railway project, which is undergoing a feasibility study by PT Kereta Api Indonesia (Persero) (Bandung, Indonesia). The company is looking for an engineering, procurement and construction contractor and says it will be funded under a public-private partnership scheme.
View Plant Profile - 3069272 3005026
View Project Report - 300137985 300142013 300044504 300137801 300035210 300048795
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
At the heart of the massive upgrade are three coal railway projects that span about 500 kilometers. The projects are to be built by PT Indika Energy Tbk (INDY:JK) (Jakarta Indonesia), MEC Coal (Jakarta), and PT Bukit Asam Transpacific Railway (Jakarta).
Under landmark 2009 legislation dubbed Indonesia's "Master Plan for the Acceleration and Expansion of Economic Development" (MP3EI), the private sector is allowed to construct transportation systems for the mining and agriculture industries. The legislation was a bid to accelerate development via better infrastructure and new economic corridors.
Half of the estimated value of this project will be jointly developed by PT Indika Energy with its EPC China Railway Group Limited (Beijing, China). The $3 billion leg of the upgrade involves building 100 to 120 kilometers of heavy-haul railway-transport systems, which will deliver 20 million tons of coal from PT Indika's Palangkaya coal mine to Jabiren coal terminal.
MEC Coal is also expecting to commence construction early in 2014 for its 130-kilometer rail project in East Kalimantan. MEC Coal's railway system is vital for transporting coal to its port and power plant, as well as products like alumina and supplies for its alumina refinery in Muara Wahau.
PT Bukit Asam Transpacific Railway, a subsidiary of state coal miner PT Bukit Asam (Persero) Tbk (PTBA:JK) (Tanjung Enim, Indonesia), is acquiring coal mines as part of its expansion plan and railway projects to increase production capacity in its Tanjung Enim mine. The 250-kilometer Tanjung Enim coal railway project will transport 25 million tons of coal from multiple concessions owned by PT Bukit Asam to the Tarahan Coal Terminal.
The PT Bukit Asam Transpacific Railway was supposed to be the first major coal railway under the private sector, after the Indonesian government released MP3EI. However, Adani Group (BSE:512599) (Ahmedabad, India) pulled out from its partnership with PT Bukit Asam in mid-2013 due to low coal market prices and rising operational costs. The proposed railway would have been able to transport 35 million tons of coal per year.
Under way is the $2 billion Pulau Baai-Muara Enim coal railway project, which is undergoing a feasibility study by PT Kereta Api Indonesia (Persero) (Bandung, Indonesia). The company is looking for an engineering, procurement and construction contractor and says it will be funded under a public-private partnership scheme.
View Plant Profile - 3069272 3005026
View Project Report - 300137985 300142013 300044504 300137801 300035210 300048795
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
