State coal miner Bukit Asam (PTBA) and state-owned railways operator, PT Kereta Api Indonesia (KAI) on Saturday (Sep 29) signed Coal Transport Development Framework Agreement for 2018 to 2027. The company expects to increase the coal transport capacity to 60 million tons (MT) of coal per year by 2023.

Both parties will construct coal transport from Tanjung Enim Baru – Prajin and Tanjung Enim Baru – Tarahan lines (Second Line) in South Sumatera.

Later, the coal transportation to Tanjung Enim Baru line – Prajin has a minimum capacity of 10 MT of coal per year and the Tanjung Enim Baru line – Tarahan (Second Line) has capacity a minimum of 20 MT of coal per year by 2023.