Regional: Taipower expands coal vessel fleet

State-owned electricity provider Taiwan Power Company (Taipower) invested US$213 million to expand its coal carrier ships fleet in an effort to save costs in transporting coal.

Besides its Dian Chang No. 1 and 2 ships currently in service, Taipower purchased four more vessels this year. Among them, three ships have started operation while the fourth will be handed over from the shipbuilder next month, CNA news agency reported.

According to Taipower, the six-ship fleet can transport eight million metric tons of coal per year. This cuts down the costs of shipping and raises the amount of coal transported in-house from 10 percent of Taipower's total coal imports to 30 percent.

Hsu Chen-hu, an official with the company, said the expansion will not only lower transportation costs, but help stabilize the domestic coal supply.

He said that coal-fired power plants account for 40 percent of the power supply in Taiwan. Coal demand is expected to rise when the company remodels its Linkou and Dalin power plants.

By 2018, Taipower expects domestic demand for coal to grow from 27 million metric tons this year to 30 million metric tons. The number will increase to 40 million metric tons by 2022.

Taiwan's main coal suppliers are China, Indonesia and Australia. Taipower's coal carrier ships mostly transport coal from Indonesia and Australia to Taiwan. (*)