Indonesia is expected to award a contract for the $2bn Puruk Cahu coal railway project in Central Kalimantan by February 2011.
The formal contract with the successful bidder will be signed in June.
Four consortiums have been shortlisted for the contract, including PT Adaro Energy, Japan's Itochu and China Harbour Engineering, according to an official.
The 185km line is the first of four proposed coal railway projects to be built across the Central Kalimantan province that will connect with a port on the coast, according to Reuters.
The construction of the railway line is expected to help increase coal production to ten million tons in its first year in the province.
