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Thursday, February 9, 2012

Russian Railways to build USD 1.7 billion coal line in Indonesia

Thursday, 09 Feb 2012

It is reported that Russia's state railway company Russian Railways intends to build a train link to transport coal in Indonesia's East Kalimantan province on Borneo.

Mr Andrey Shigaev project director of Russian Railways said that the project will be financed by private investors and Russian state development bank Vnesheconombank.

Mr Awang Faroek governor of East Kalimantan said that "The first stage of the railway will be meant for coal, but hopefully we can also use it for crude palm oil plantation harvests, rubber and people."

It is expected that the first phase, covering 185 kilometers of track, will cost around USD 1.7 billion and is scheduled to enter service in the first quarter of 2017, bringing 20 million tonnes of capacity online in the first year.

A further 60 kilometers will be added as a second stage, representing an investment of USD 0.7 billion.


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