Indonesian Railway Contract Still Up for Bidding

8 September 2010 (Last Updated September 8th, 2010 18:30)

The tender process for a $2.2bn project to build a coal-transporting railway line in Central Kalimantan province, Indonesia, is still underway and no winner has been selected. The government said that four companies have been finalised: Itochu-Toll consortium, a Drydocks-MAP Resources In

The tender process for a $2.2bn project to build a coal-transporting railway line in Central Kalimantan province, Indonesia, is still underway and no winner has been selected.

The government said that four companies have been finalised: Itochu-Toll consortium, a Drydocks-MAP Resources Indonesia consortium, Bakrie Indo Infrastructure and a Mega Guna Ganda Semesta-led consortium.

The proposed Puruk Cahu-Bangkuang railway is the first phase of a central Kalimantan coal railway slated to cover 1,829km.

The build, operate, own and transfer contract includes a 185km railway connecting coal mines and ports which will see the winner construct and operate the service for 30 years.

The line is expected to increase coal production in the province and could transport ten million tons a year during its first ten years of operation, according to the Jakarta Globe.

The winning bidder will be selected by the end of 2010, while the railway has denied reports that Japan's Itochu Corporation had been awarded the final contract.