SOEs to partake in bidding to manufacture 1,050 train cars

SOEs to partake in bidding to manufacture 1,050 train cars

State-Owned Enterprises (SOE) Minister Erick Thohir receives a visit from the Bangladesh Railroad Minister Md. Nurul Islam Sujon. (28/2/2020). ANTARA/Aji Cakti/ak

Jakarta (ANTARA) - State-Owned Enterprises (SOE) Minister Erick Thohir confirmed that several Indonesian SOEs operating in the railroad sector were permitted to partake in a bidding process to manufacture 1,050 train cars for the Bangladesh railway.

"We have been offered the opportunity to participate in the tender for 1,050 train cars worth hundreds of millions of US dollars," Thohir stated in Jakarta on Friday.

Thohir expounded that this cooperation was part of the SOEs’ program to develop the Indonesian railway industry, with focus not only channeled on the domestic market but also for supplying to other countries, such as Bangladesh.

"Cooperation has been sound between Indonesia and Bangladesh. The partnership established in 2005 between state-owned companies in the railway sector has been worth nearly US$181.6 million," the minister stated.

On Friday, the minister had received a visit from Bangladesh Railroad Minister Md. Nurul Islam Sujon. Erick, who arrived along with the directors of Industri Kereta Api (INKA), Kereta Api Indonesia (KAI), and Len Industry, at the meeting.

In September last year, INKA had exported 22 train cars to Bangladesh as part of a series of deliveries that began with 50 MG (Meter Gauge) trains ordered by Bangladesh Railway through the Chittagong Port in January 2019.

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That was followed by the delivery of 200 BG (Broad Gauge) trains – 26 of them in July 2019, also through the Chittagong Port.

Subsequently, 26 trains of 200 BG type were delivered on July 24, 2019, to Chittagong Port, Bangladesh.

PT Inka (Persero) produced a total of 250 trains of 50 BG-type and 200 MG-type for the Bangladesh Railway.

PT Inka had bagged a tender in 2017 with the procurement of 250 passenger trains and a contract value of $100.89 million. In total, INKA had produced 250 train cars for the Bangladesh Railway. The deal was sealed in a bidding process won by INKA in 2017, with a contract value of $100.9 million. Related news: Indonesia's INKA to meet high demand for trains in Bangladesh

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