Adani group in $1.65-billion port-and-rail project in Indonesia

Mundra Port and Special Economic Zone (MPSEZ) along with other Adani Group subsidiaries will participate in the construction of a rail-and-port project in Indonesia estimated to cost in excess of $1.6 billion.

PT Adani Global, the Indonesian arm of Adani Enterprises, has entered into a binding tripartite agreement with the government of Sumatra Selatan and PT Bukit Asam for setting up the rail-and-port project, the company said in a release.

The project involves construction of an over 250-km rail line to transport coal from Tanjung Enim, a coal mining area, to Tanjung Carat, where Adani will set up a port for evacuating the coal. 

The project is estimated to cost $1.65 billion and will take a minimum of three years to construct, Adani said.

The project will handle coal transportation of Adani Enterprises from Indonesia where it has secured mining rights.

"The coal terminal will have the capacity to handle 50 million tonnes of coal. Bukit Asam will supply around 34 million tonnes," Alex Noordin, governor of South Sumatra, said.
 
The project provides coal purchase rights to Adani and the infrastructure created will be used for transportation of a minimum volume of 35 million metric tonnes per annum (MMPTA) of coal from PT Bukit Asam concessions in South Sumatra, Adani Enterprises said in the statement.