Agritrade, Pertamina ink deal for exclusive rights to hauling road
Thursday, October 11 2012 - 05:54 AM WIB
Hong Kong-listed Agritrade Resources Limited, owner of a 2,000-hectare coal mine in Central Kalimantan announced that its indirect non-wholly owned subsidiary PT Megastar Indonesia has entered into an agreement with oil and gas company PT Pertamina for the exclusive rights to operate and manage a 60-kilometer road for a period of 10 years beginning Oct.1 2012 and ending Sept. 30 2022.
The Pertamina Road forms the major coal hauling route between Simpang Bahalang and Telang Port, and serves as the preferred road for the expedient transportation of coal from mines in the area destined for export.
Ng Xinwei, Chief Operating Officer of Agritrade Resources Limited, commented, ?As sole operator and manager of the Pertamina Road, Agritrade will enjoy not only guaranteed access at any given time, but will also benefit from long-term cost savings through increased transportation efficiency.
As operator and manager, Agritrade will improve the current condition of the road by flattening, stoning and widening it. These improvements will ensure larger loads, significant increase of transportation capacity, reduced transportation times and lower fuel costs as more coal can be transported per trip.
Furthermore, as the main thoroughfare for the local area, the Pertamina Road is a vital transportation link for neighbouring coal mines which require the road to be properly maintained for coal hauling.
To maximise production efficiency, Agritrade will also continue to invest in upgrading other existing infrastructure facilities to further reduce production and transportation time, thereby lowering costs and boosting profitability.
Editing by Adianto P. Simamora