Cokal signs JV with MDM for river barging
Tuesday, May 21 2013 - 12:49 PM WIB
ASX-listed emerging coking coal producer, Cokal Limited announced that it has entered into a 50:50 Joint Venture (JV) with Meratus Advance Maritime (MDM). The JV will own and manage the shallow river barges and tugs designed specifically for PT Bumi Barito Mineral (BBM).
The company in its press statement on Tuesday said that the JV is the result of an accumulation of almost 2 years of studies into river based shallow draft barging systems which have confirmed its effectiveness on the Barito River.
The Barito is a major coal barging river on which BBM is located.
While shallow draft barging systems are used extensively worldwide the system has not been used in Indonesia to date.
Recently the BBM?s river barging solution moved to the next phase and US Naval Architects were retained to do detailed design for contract tenders to be issued. This is scheduled for completion in third quarter 2013.
Cokal?s Chairman and CEO, Peter Lynch said that this strategic partnership enables MDM to bring the experience and knowhow necessary to ensure the success of river barging on the Barito River, and for Cokal to be a part of controlling the critical part of its supply chain.
"This is a significant achievement for Cokal as we draw closer to the commencement of our coking coal production in mid 2014," he said.
MDM will operate the river barges and the river supply chain.
MDM?s Managing Director, Jorn Annweiler said ?given our extensive experience in river barging in Indonesia we saw this as a real opportunity to be part of introducing new concepts to river barging in Indonesian that will bring about significant change and benefits to the industry?.
MDM is part of the Meratus Group which has operated in Indonesian shipping since 1957 and has provided barging and shipping services to a number of the major Kalimantan coal operations.
Editing by Adianto P. Simamora