Japan's Itochu will invest in a coal-transporting railway line in Central Kalimantan province, Indonesia.
The $2.2bn project includes a 1,829km railway connecting ports and mines.
Itochu will construct the rail line and operate it for 30 years.
The line is expected to increase coal production in the province and could transport 10mt a year during its first ten years of operation.
The government also aims to create a special economic zone in Kalimantan, focusing on port and rail transportation services.
The project, expected to be completed by 2013, is one of 100 public-private infrastructure projects undertaken by the government.