Arpeni to add 24 coal transport vessels to its fleet in 2006

Publicly listed shipping company PT Arpeni Pratama Ocean Line Tbk has allocated a total of US$135 million investment to add up to 24 coal transportation vessels to its fleet in 2006 as an effort to strengthen its coal transportation business.

Arpeni's president Oentoro Surya said Monday the additional fleet would consisted of 2 panamax-size bulk vessels, 2 general cargo vessels, 8 tugboats, 8 barges and 4 floating cranes.

The company currently operates 8 bulk carrier with capacity of between 27,000 to 62,000 DWT, supported by 6 floating cranes with capacity ranging from 10,000 tonnes-15,000 tonnes per day and several barges and tug boats.

Oentoro said Arpeni is currently negotiating to extend the coal transport contracts with PT Adaro Indonesia and PT Kideco Jaya Agung. The negotiations are expected to be concluded next month, Oentoro added.

Previously, Arpeni was contracted to transport Adaro's products from offshore Taboneo in South Kalimantan to the Suralaya power plant in Banten with total volume of 3 million tons of coal for a three-year period starting 2003. Meanwhile, Kideco awarded a four-year contract to transport a total of 6.5 million tons of coal from Adang Bay to the same power plant starting 2002.

Coal transportation service contributed about 60 percent of Arpeni's dry bulk revenues last year. (Godang/denny)