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Adhi Karya to take stake in E Java port railway project

Adhi Karya to take stake in E Java port railway project
Indonesian state-owned construction company Adhi Karya will take up a stake of 20% to 25% in a consortium that is set to build a container monorail linking Tanjung Perak Port in Surabaya with Teluk Lamong Port in Gresik, both in East Java.

The deal for the IDR3.5trn ($305m) automated container transporter (ACT) project will be signed in December, and construction is expected to take two years, local media reports said.

Other investors in the ACT project include state railway manufacturer Industri Kereta Api (Inka) and electronics manufacturer LEN Industri.

Pelindo III will operate the system while Adhi Karya will handle construction, Inka will manage the production of all rolling stock and LEN will supply the signaling system. Financing for the project is expected to come from investing companies' own capital and from bank loans.