Railway Infrastructure 2010 -January 2010

INDONESIAN COMMERCIAL NEWSLETTER

January 2010

DEVELOPMENT OF RAILWAY INFRASTRUCTURE

Backgrounds

Railway transport is vital in some parts of the country especially in more industrialized and most densely populated areas. Railway transport system is needed for the large number pf passengers and larger and bulk cargos. Railway transport system, however, has not expanded as expected, although it is put in the priority list of the working plan of the government. The government has given greater attention to developing toll roads, which have been growing fast in capacity. Until 2008, the country had 4,813,000 km of railroads or an increase of only 0.2% from 4,802,547 km in the previous year. Railway cars rose in number by 5.8% from 4,840 units to 5,120 units. The number of passengers increased 10.9% from 175 million to 194 million in 2008.

The transport ministry has worked out a program to revitalize the country's railway infrastructure for 2010. The program include revitalization of railroads, railroad bridges and underpasses in Sumatra and Java, development of railway system in Aceh, construction of new double tracks in 8 areas, development of long delayed Jakarta's subway project, known as Mass Rapid Transit (MRT), development of other railway infrastructure, modification of railway stations, etc.

Frequent railway accidents in the country are a reflection of the fact that the facilities and infrastructure have been outdated, too old and no longer fit for operation. In advanced countries such as Japan, the economic life of railway facilities is set at 5 to 10 years only. After that they are scrapped and entirely replaced. In Indonesia locomotives which already passed the age of 25 years continued to function after some overhauling and refitting without replacing vital parts or components like bogies.

The first phase of revitalization or modernization of the country's railway system for the period of 2008-2010 has been partly completed, such as the construction of 34.87 kilometer double track between Patuguran and Purwokerto with an investment of around Rp 498.98 billion and the 30.45 kilometer double track between Petarukan and Larangan with an investment of Rp 325.29 billion. The Petarukan-Larangan track is part of the 60-kilometer double track of Tegal-Pekalongan in Central Java. In addition, 75 units of train consisting of 35 economic trains, 20 community trains and 20 executive trains and two unit of locomotive have been procured with a total investment of Rp92.98 billion. The next phase of revitalization is estimated to cost up to Rp 20 trillion to be carried out in the next five years until 2015

Based on the Law on Transportation No. 23 of 2007, investment in the transport sector is wide open in Indonesia both to the regional administrations, local and foreign investors. Foreign investors have indicated interest in some of the railway projects offered by the government such as the railroad projects for coal transport in Palaci-Bangkuang in Central Kalimantan and one planned by coal miner PT Tanmbang Batubara Bukit Asam (PTBA)in cooperation with a Chinese investor in South Sumatra. The Palaci-Bangkuang project is construction of a 185 kilometer railroad to cost around US$ 750 million to be completed in 2012. The one to be built by PTBA will extend from Tanjung Enim, where it has a coal concession and the port of Tarahan 307 kilometer away in Lampung. The project is estimated to cost more than US$ 1.6 billion. Construction of the project has been delayed as it needs recalculation of the investment.

State-owned railway company PT Kereta Api is still the only operator of railway transport in the country. The company serves passenger and cargo transport. PT INKA, also a state company, produces locomotives, railway cars, and rail tracks.

Development of railway infrastructure

a. Length of railway tracks

Investment for railway tracks in the country is much smaller than investment set aside for networks of highways and toll roads.

In the period of 2004-2008 the total length of total railway tracks in the country grew 1.6% to 4,813,000 km from 4,517,197 km. During that period there was much work of replacements of old tracks and construction of new tracks.

Revitalization of the railway system in some areas by the government is aimed at supporting economic development in those areas.

According to the railway directorate general of the Transport Ministry, the revitalization budget for the repair and replacement of railway sleepers from wooden material to concrete sleepers in 2008 reached Rp 19 trillion. In 2009, the Transport Ministry provided a budget of Rp 20 trillion for the repairs of railway track between the port town of Tanjung Priok to the Kota station in downtown Jakarta. Part of the track lies in slump areas that need special care to guarantee security.

In 2009, new tracks coming on stream included the 34.9 kilometer Patuguran-Purwokerto double track in Central Java and the 30.5 kilometer Petarukan - Larangan double track also in Central Java.

b. Length of tracks by types

There are a number of types of rails used for railroad tracks including R25, R 33, R42, R50 and R54. Higher number denotes higher quality .

The railway revitalization program includes repairs of damaged railway tracks and replacement of wooden sleepers with concrete sleepers, and replacement of the old type of R33 with new one R54.

In the past five years, the Rp54 type has dominated the types of rails used in the country In 2004, the R54 railway tracks totaled only 1,423,324 km, but in 2008, the length already reached 2,234,193 km. Railroads of the R25 type were the shortest totaling around 211,220 km in 2008.

d. Number of Stations

In addition to dropping and picking up passengers, railway stations also serve as a shunt yard switching a train from one track to another to accommodate another train. They have additional tracks for that purpose and for reserve

A station is equipped with railroad platform for departing and arriving passengers. There are two types of platform construction - old ones dating back to Dutch colonial time with low floor and new one with raised level of floor.

Generally large stations have both types of platform. The Tanah Abang station in Jakarta like most stations in Japan, passengers may not walk to cross over the tracks , but they have to use a raised crossing bridge .

In old stations passengers walk over freely the rail tracks putting them in danger. Generally small stations have three tracks that will meet at one point arranged so by a rail switcher at the controlling room (PPKA). The additional tracks are needed for shunting and for reserve.

Large stations generally have more than four tracks to facilitate shunting Additional track is not used in stopping places.

Based on data at the railway directorate general, there was almost no addition to the number of stations in the past five years. In 2004, there were 571 railway stations including 437 in Java and 134 in Sumatra. In 2008, the total number was even smaller at 570 including 441 units in Java and 129 units in Sumatra. Java had additional number of stations, but the number fell in Sumatra from 134 to 129 . ....

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