Rig Tenders expects $64m revenue from coal miners

Publicly listed shipping company PT Rig Tenders Indonesia (RTI) expects to gain an additional revenue of US$64 million over the next five years after buying and operating 27 second-hand vessels.

In its circular to its shareholders released Monday, the company said the vessels would be used to transport coal owned Kalimantan-based coal producers PT Adaro Indonesia and PT Arutmin Indonesia under long-term contracts.

Under the contract with PT Adaro Indonesia, some of the vessels will be used to transport coal from Kelanis Barge Loading Terminal of Central Kalimantan either to Taboneo Transshipment Point, Pulau Laut Coal Terminal or Cirebon Coal Terminal. The contract is valid for 10 years starting in 2002 with an option of 5-year extention.

Meanwhile, the contract with PT Arutmin Indonesia obliges RTI to use the remaining vessels to transport Arutmin's coal from Satui and Senakin Barge Loading to Pulau Laut Utara Coal Terminal. This contract is for 4 years from 2004-2008, with an option of yearly extension.

RTI has proposed to purchase the 27 vessels from its affiliated companies for US$54.8 million. Of the 27 vessels, 5 tug boats and 3 barges will be purchased from PT Batuah Abadi Lines, 5 tug boats from CH Logistics Pte Ltd and 7 tug boats and 7 barges from Goldship Private Limited.

CH Logistics, Goldship and Grundtvig are the wholly owned subsidiaries of Malaysian firm Scomi Marine Bhd through its Singaporean shipping unit International Marine Services Pte Ltd (IMS), which also owns 80.54 percent of RTI. Meanwhile, Grundtvig owns 95 percent of Batuah Abadi.

RTI plans to use US$ 24.8 million in internal funds and raise loans from reputable foreign banks to pay for the vessels.

Currently, RTI owns 38 vessels, of which about 26 have been chartered out for coal transportation and 12 for offshore support services. (Robert)