PLN mulls setting up coal transportation consortium

State electricity firm PT Perusahaan Listrik Negara (PLN) plans to set up a consortium with shiping companies to ensure transportation of coal supplies to its coal fired power plants, Bisnis Indonesia Daily reported on Friday.

PLN's President Commissioner Alhilal Hamdi said in Jakarta on Thursday that the company has been talking about the plan with shipping companies so that the consortium can be established late this year

"The consortium will be established to reduce the dependence of PLN on contracts with shipping companies. Through the consortium, the availability of sea transport for carrying coal is more reliable," he said.

The consortium is also expected to capable of fulfilling the need for over 200 coal carriers. Now, the coal carriers chartered by PLN remain below the number so that supply of coal to its power lants is highly vulnerable to weather disturbance.

In addition, PLN also will revitalize seaports in Tanjung Jati B power plant, in Jepara, Central Java to enable coal carriers to berth directly in the location, he added. (*)