A subsidiary of India’s Adani Group agreed to build a dedicated port-and-rail project in northern Sumatra.
PT Adani Global, based in Indonesia, entered an agreement with the regional government of Sumatra Selatan and local coal mining company PT Bukit Asam to build and operate a 250-kilometer rail line and to develop a port facility with capacity for coal shipments.
The move places Ahmedabad-based Adani, which operates India’s largest privately-developed cargo terminal at Mundra, solidly into the international coal transport market.
“The project is estimated to cost $1.65 billion and will be constructed within 48 months. The government of South Sumatra has undertaken to provide and facilitate all permits/approvals, and arrange for land for the development of the proposed port and rail project,” Adani said in an announcement.
The agreement calls for the ownership, construction and operation of a 250-kilometer rail line, initially on a 30-year concession, capable of carrying a minimum annual volume of 35 million metric tons of coal. The rail line will connect Tanjung Enim, a coal mining area to Tanjung Carat, where the Adanis will develop the planned port facility with adequate capacity for handling coal shipments.
The company, which recently acquired a large coal mine in Australia, said the new venture will help boost its coal sourcing reach in Indonesia.
Besides port-terminal operations, the group has considerable interests in commodities trading, power generation, infrastructure development and agriculture processing in India. It is currently developing a dedicated automobile terminal in a joint venture with Japan’s NYK Line and Wallenius Wilhelmsen Logistics of Norway at Mundra.
PT Adani Global, based in Indonesia, entered an agreement with the regional government of Sumatra Selatan and local coal mining company PT Bukit Asam to build and operate a 250-kilometer rail line and to develop a port facility with capacity for coal shipments.
The move places Ahmedabad-based Adani, which operates India’s largest privately-developed cargo terminal at Mundra, solidly into the international coal transport market.
“The project is estimated to cost $1.65 billion and will be constructed within 48 months. The government of South Sumatra has undertaken to provide and facilitate all permits/approvals, and arrange for land for the development of the proposed port and rail project,” Adani said in an announcement.
The agreement calls for the ownership, construction and operation of a 250-kilometer rail line, initially on a 30-year concession, capable of carrying a minimum annual volume of 35 million metric tons of coal. The rail line will connect Tanjung Enim, a coal mining area to Tanjung Carat, where the Adanis will develop the planned port facility with adequate capacity for handling coal shipments.
The company, which recently acquired a large coal mine in Australia, said the new venture will help boost its coal sourcing reach in Indonesia.
Besides port-terminal operations, the group has considerable interests in commodities trading, power generation, infrastructure development and agriculture processing in India. It is currently developing a dedicated automobile terminal in a joint venture with Japan’s NYK Line and Wallenius Wilhelmsen Logistics of Norway at Mundra.