KAI ready to fund entire construction of the tram transport mode

Indonesia 19 Sep 2014
KAI ready to fund entire construction of the tram transport mode

SURABAYA –PT Kereta Api Indonesia (KAI) has stated its readiness to fund the entire construction of the tram transport mode, which is part of the Mass Rapid Transit (MRT) project of Surabaya City.

Director of PT KAI, Ignasius Jonan, said that his company is willing to build the tram transport mode with a ground rail line along 17km that stretches from the northern part to the southern part of Surabaya.

According to him, the city government is obliged to prepare the land for the rail, while KAI will make the investment. “We are the one building and operating it. We will build it by ourselves and will not use any funds from the State Budget (APBN),” he said after meeting Surabaya Mayor, Tri Rismaharini, Thursday (11 September).

Director of PT KAI, Ignasius Jonan

Director of PT KAI, Ignasius Jonan

KAI and Surabaya City Government, said Jonan, are preparing the files for a memorandum of understanding (MoU) of the MRT project. However, Jonan was not yet willing to reveal the completion target date of the tram development, as well as the value of the investment required. “It is still being calculated. Anyway, the tram is ready. Mrs. Mayor cuts the ribbon, then a photo is taken,” he said.

Tri Rismaharini said that at first tram the city government expected the Surabaya tram project to cost up to Rp 2.2 trillion. This value was calculated based on the cost of infrastructure development, such as the building of a depot and so on.

However, she continued, if the project is handled by PT KAI, the financing can be more efficient because it can use of some facilities belonging to PT KAI. Thus, this cooperation is judged to be beneficial to both parties.

“Usually a bigger portion of the cost of building the rail by KAI always goes to land acquisition matters. Here, the land acquisition is the authority of the city government, so the tram development will not be expensive,” she said.

Risma added that, based on the previous calculations of KAI, the tram development will require an investment of about Rp 400 billion. The tram project’s groundbreaking is targeted to take place next month. Meanwhile, the physical development will take about 1.5 years.

“The tram carriages will in due course be imported from abroad. In terms of the fuel, we have agreed that the tram will use battery technology, with an average speed of 30 km per hour,” he added.

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