Jakarta-Government of provincial East Kalimantan signed a memorandum of understanding (MoU) with Kalimantan Rail PTE Ltd from Russia, for the construction of a rail along the 160 km. The railway network project that crosses district of Paser, Penajam Pasir Utara (PPU), and Balikpapan, worth USD 2.4 billion is expected to begin construction in 2013.

Construction of the railway was intended to transport coal. While passenger transport is still considered it unlikely to cause untoward in terms of business.

"The train is the focus of transporting passengers, the world's no profit. At best together. So there should be cross-subsidies to transport goods such as coal," said Director General of Railways Ministry of Communications (Kemenhub), Tundjung Inderawan encountered after witnessing the signing of the MoU at the Hotel Kempinski, Jakarta, Tuesday (7/2).

The best solution, further Tundjung, amid the routine of transporting coal, the company provides a specific schedule to transport passengers. This step is one form of public concern about the company or Corporate Social Responsibility (CSR).

Tundjung explains, an investment made Kalimantan Rail PTE development of its railway network special. That way, without going through a tender for direct investment. Kemenhub position in this case only give technical approval.

As for development, management, and maintenance of rail infrastructure network following, the sole responsibility of the investor. It is also stressed, network construction is different from the rail network development plan that was rejected in Central Kalimantan governor Teras Narang.

About the length of the contract, plus Tundjung, will be decided by a meeting between investors and the Investment Coordinating Board (BKPM) in further meetings. View of the area traversed length (160 km), Tundjung cautioned that Kalimantan provincial government to coordinate with the district / city in terms of land acquisition.

While the Governor of East Kalimantan  Awang Ishak Faroek optimistic his side can overcome the problems of land acquisition, as well as land acquisition for railway projects undertaken RAS Al-Khaima in the East Kutai is entirely along the 135 miles already completed. This can happen because the city government together with local indigenous communities.

In the future, hoping Awang, who built the railway line Rail Kalimantan PTE not only on coal but also crude palm oil (CPO), the results of plantation forests (HTI), rubber, and the last passenger. "Words to live MOC-SK changed its course, so it can haul passengers," said Awang.

Meanwhile, Director of Rail PTE Kalimantan, said Andrey Shigaev total project investment of USD 2.4 billion, which is divided in two phases ie USD 1.8 billion and USD 0.6 billion.