NEW INDONESIAN COAL LINE
Posted on 02 April 2009
Ras al Khaimah (RAK), a firm based in the United Arab Emirates (UAE), has been granted a licence to operate a special-purpose, 120km rail line in Indonesia, as part of its plans to source coal for a power plant it is building in the emirates. The first phase of the 1,000 megawatt, coal-fired power plant is to be built in the next two years and requires planners to secure a stable and consistent supply of coal to ensure the plant’s reliability. In addition to buying coal mines in East Kutai, in Indonesia’s East Kalimantan province, RAK entities are building the railway at a cost of up to $US600 million to transport coal from the mines to a harbour for export. RMMI managing director Madhu Koneru Madhu is quoted saying: Indonesia does not have the proper infrastructure [for transporting coal], so a rail track is being undertaken as it is the cheapest mode of transport and provides the most consistent delivery”.
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