MBSS suspends coal shipments to Philippines

By Brigida Ernestina Elu Wea

IDX-listed PT Mitrabahtera Segara Sejati Tbk (MBSS) has decided to suspend the shipment of coal to the Philippines due to security problem following recent hijacking incidents in the waters of the Philippines.

MBSS President Director Rico Rustombi said on Wednesday that the company will resume shipping coal to the Philippines once security condition has improved.

Concerns over security condition in transporting coal to the Philippines emerge after the Abu Sayyaf rebel group in the country has recently taken 14 Indonesian crewmembers of coal barges. The Indonesian Coal Mining Association (ICMA) has instructed all of its members to suspend coal export to the Philippines.

Rico said that the suspension of coal barging to the Philippines would not provide much impact to the company as shipping volume to that country has been relatively small. He said that the clients are mostly power producers. ?Although small in volume, the margins are positive,? he said.

Aside from transporting coal to the Philippines, the company?s vessels also serve clients in other countries such as Malaysia, Vietnam, India, and other Southeast Asian countries.

Rico said that demand for coal transport services at home has been on the rise amid the government?s program to develop a combined 35,000 MW power plants until 2019.

Last year, MBSS booked coal barging volume of 22.2 million tons, and 15.5 million tons for floating cranes. Domestic clients remain the largest market for the company, which owns 86 tug boats, 76 barges, and six floating cranes.

Editing by Reiner Simanjuntak