Pelindo says construction of South Sumatra coal ports in 2011

State owned port operator PT Pelabuhan Indonesia (Pelindo) II plans to build a river port and sea port in South Sumatra in cooperation with the local government in a bid to further boost coal shipment from the province.

Dani Rusli Utama, the firm's general manager for South Sumatra operation, said in Palembang on Thursday that Pelindo II would also cooperate with local coal producers such as PT Tambang Batubara Bukit Asam (PTBA) to develop the river port and sea port.

Currently, the company is finalizing feasibility study (FS) to build a stockpile at Muara Abab or Muara Lematang river port in Muara Enim regency, from which coal will be transported to Tanjung Carat sea port in Musi Banyuasin regency through Musi river, which have a distance around 200 kilometers.

The FS is expected to be completed in April 2011 and construction will be started in the end of 2011, he said

The company is also expected to complete the river port and sea port in 2013 and total investment of $1.35 billion for a river port and sea port, which will have a capacity of 50 million tons.

According to him, at present, the province transports only between 8-10 million tons of coal a year through the Tarahan terminal in Lampung and another 2 million tons of coal to Kertapati coal terminal in South Sumatra.

In July 2009, Pelindo II and South Sumatra provincial administration signed an MoU to jointly build sea port and river port to anticipate increasing coal production from the province.

Under the deal, Pelindo will build coal transshipment port in Banyuasin which could serve panamax vessels. Pelindo will also build coal loading river port in Muara Abab, Sekayu, capable of loading 500 tonnes of coal per hour. (*)