Barge overcapacity hits coal logistics as volumes adjust

By Adianto P. Simamora

The government’s decision to cut coal and nickel production quotas this year is rippling through the logistics chain, exposing overcapacity in the barge segment as shipment volumes ease amid softer demand.

Sulistyo Buddy Rakhmadi, Commercial & Operation Director of PT Gurita Lintas Samudera, said the shipping sector is directly affected by fluctuations in coal output and export volumes, given its position in the industry’s extended value chain.

“In the last three years, barge deliveries were significant. There was a kind of euphoria in building vessels to meet projected transport demand,” he said during a panel discussion at the IFTAR CoalMetalAsia recently.

He said that the expansion was driven by buoyant commodity prices and strong export appetite, prompting operators to add capacity aggressively.

The recent production adjustments in both coal and nickel, however, have laid bare the risks of scaling up fleets during an upcycle.

“The adjustment is quite significant and the impact is felt directly. This has created overcapacity in the fleet,” Sulistyo said.

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Capacity that previously shifted between coal and nickel cargoes is now under strain as both commodities undergo volume corrections, limiting flexibility for operators seeking alternative loads.

While companies continue to pursue operational efficiencies—through tighter scheduling, cost control and route optimization—Sulistyo acknowledged that structural overcapacity cannot be solved by internal measures alone.

“Efficiency can be pursued, but once you are in an overcapacity situation, the challenge becomes much bigger because there is simply not as much cargo to transport as expected,” he said.

He added that production and regulatory policies should factor in downstream implications, as employment across shipping, port services and supporting logistics depends heavily on coal transport activity.

The Ministry of Energy and Mineral Resources has announced plans to cap coal production at around 600 million tonnes this year, down from 790 million tonnes produced in 2025. Nickel ore output is set at 260–270 million tonnes, compared with 379 million tonnes approved for 2025.

Editing by Reiner Simanjuntak