China Railway Group Wins $4.8bn Indonesian Contract

28 March 2010 (Last Updated March 28th, 2010 18:30)

China Railway Group has won a contract worth $4.8bn to build a 307km railway in Indonesia. The south Sumatra project has been awarded by Indonesian state-owned company PT Bukit Asam through its subsidiary PT Bukit Asam Transpacific Railway. China Railway is expected to inves

China Railway Group has won a contract worth $4.8bn to build a 307km railway in Indonesia.

The south Sumatra project has been awarded by Indonesian state-owned company PT Bukit Asam through its subsidiary PT Bukit Asam Transpacific Railway.

China Railway is expected to invest $1.3bn in the design and construction of the railway project and $3.5bn for its maintenance, according to Reuters.

The contract includes four years of construction and an operational period of 20 years.

China is investing an average of CNY700bn ($102.5bn) a year in rail construction.