Russian Railways to build US$1.7bn coal line in Indonesia

Russia’s state railway company Russian Railways intends to build a train link to transport coal in Indonesia’s East Kalimantan province on Borneo. The project will be financed by private investors and Russian state development bank Vnesheconombank, said project director Andrey Shigaev.

“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,” said Awang Faroek, the governor of East Kalimantan. It is expected that the first phase, covering 185km of track, will cost around US$1.7bn and is scheduled to enter service in the first quarter of 2017, bringing 20Mt of capacity online in the first year.

A further 60km will be added as a second stage, representing an investment of US$0.7bn.