Published : 2014-02-05 14:16
Updated : 2014-02-05 14:16
Hyundai Engineering and Construction Co., one of South Korea's largest builders, said Wednesday it wants to take part in a $1.6 billion railroad project in Indonesia with a Russian partner.
The company said a memorandum of understanding was reached earlier in the week in Moscow with Russian builder RZDstroy for the construction project in East Kalimantan. The railroad will be built to carry coal from mines located in the center of the island to its eastern coast some 192 kilometers away.
PT Kereta Api Borneo, a local affiliate of RZDstroy, has already secured rights from the regional government for the railroad.
"The actual agreement on the construction itself is planned for 2015, after a year is spent on drawing up the blueprints," a company representative said. He added that details on the completion date will only be known next year.
The company also said the partnership with the Russian builder can open new opportunities for Hyundai to engage in similar work in Indonesia and in Russia, which are in the process of expanding its transportation infrastructure.
In Indonesia, Hyundai is presently engaged in four projects worth some $900 million, including the Peusangan hydroelectric power station. (Yonhap News)