COSCO to enter Indonesian coal transportation business
Friday, April 18 2008 - 01:59 AM WIB
The chief executive of Global Putra International, Sumadi Kusuma, said in Jakarta Thursday that the two companies would soon set up a joint venture to run the coal transportation business.
The joint venture will invest between US$500 million and $1 billion to buy about 10 cargo ships which would be operated to mainly transport coal from Indonesia to abroad especially to China, he said.
The ships which would have loading capacity of between 50,000 tons and 100,000 tons each would use the Indonesian flag to anticipate the implementation of cabotage principle in the country in 2010.
Kusuma said that he and COSCO's President Director and CEO Wei Jiafu had met Minister of Transportation Syafi'i Jamal recently to report the planned establishment of the joint venture.
"We have submitted all the required documents to the minister, and we hope we would be able to begin the operation by the end of this year," he said.
According to the ministry data, Indonesia would need at least 390 coal ships by 2010, comprising 10 ships of Panamax type, 13 ships of handymax type and 367 tug and barges.
COSCO has a business unit in Indonesia through PT Ocean Global Shipping based in Jakarta but the unit mostly handles container and dry bulk (coil) and has never delivered coal.(*)