JAKARTA (TheInsiderStories) – Indonesia Railway Development Consortium (IRDC) plan to build a railroad linking Laos to Vietnam, said the official last week. The value of the project worth of Rp28 trillion (US$1.98 billion) with length around 400 kilometers.
The cooperation was marked by the signing an agreement between IRDC, Laos’ Petroleum Trading Lao Public Co., (Petrotrade), and Vietnam’ HT Investment Construction Management Co.Ltd. The deal was follow up a bilateral meeting between President Joko Widodo and Prime Minister Thongloun Sisoulith in 2017.
CEO of INKA, Budi Noviantoro, said that his party was still waiting for the completion of the field survey conducted by Petrorade. The construction of the railway its expecting to be completed in 2.5 years. In this project, the railway maker offered an investment Rp9 trillion.
The railroad project provides construction of facilities from the Thakhek Laos district to Vung Ang Port Vietnam. This project will also support Indonesia’s coal exports to Laos by 6.5 million tons per year, as well as the Laos’ Potassium import to Indonesia by 1 million tons per year.
In train business, recently, Philippines has ordered six sets trains rail diesel type with total price Rp1.48 Trillion. According to Noviantoro the train purchases had been agreed and would be sent to Philippines in mid-July.
While in the meeting with Argentine’ president, Widodo has offered the country to order train from INKA. Mauricio Macri responded that he does not only was interested in train but also interested to aircraft maintenance services from PT Garuda Maintenance Facilities Tbk (IDX: GMFI).
The CEO said, INKA it wants to strengthen its foothold in Southeast Asia by participating in the many railway mega projects in Thailand and other countries. The company itself has a target to be able to control the carrier market in Southeast Asia in 2020.
Last year, INKA joined with Thanakorn Co. Ltd and the State Railway of Thailand set up a join venture company (JVC) INKA Thailand Co, to handle Thai government’ mega projects seven double-track railways spanning 933 kilometers worth a combined 113.66 billion baht ($3.76 billion).
Thanakorn owns a 59 percent stake in the JVC, while INKA holds the remaining shares. Chief executive of Thanakorn, Thananot Thunyaphongphaiboon said the partnership also covers both parties’ presence in Laos, Cambodia, Vietnam, and Myanmar. While, Noviantoro, said that the cooperation between the two parties in the form of 150 locomotives delivery.
Recently, to support the export market, the company immediately realized the construction of its second plant in Banyuwangi, East Java with an investment of Rp600 billion. The main factory of the manufacturer in Madiun, also in east Java.
US$1: Rp14,100, THB30.26
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