Sembawang Kimtrans to serve Banpu?s coal transportation

Singapore-based logistics solution provider Sembawang Kimtrans Ltd (SKL) said Wednesday it had secured a contract from Thailand energy company Banpu Public Company Limited (Banpu) to supply one unit of prototype self-propelled barge for Banpu's Trubaindo coal mine in West Kutai regency, East Kalimantan Province, for a period of 12 months.

The 10,000 DWT barge is specially engineered to transport coal along the Mahakam River with optimal efficiency. According to SKL, the prototype is highly maneuverable and is faster than the conventional tug and barge set. Over the contract period, SKL will further fine-tune the prototype to suit conditions of the river.

Based on the prototype, SKL will design and develop future units of self-propelled barges for Banpu.

SKL said Trubaindo will commence operation in fourth quarter of 2004, with initial production of 0.3 million tons. By 2006, the production will reach full capacity at 5.0 million tons per annum.

In the interim, SKL will also supply 3 sets of tug & barge for the transportation of coal over a period of 18 months. SKL, however, did not say where the sets of tug & barge to be operated.

The total contract value for the prototype barge and the 3 sets of tug & barge is at US$2.7 million.

Banpu operates seven coalmines in Indonesia including three producing coalmines, that is Jorong Barutama Greston in South Kalimantan, Indominco Mandiri in East Kalimantan, and Kitadin in East Kalimantan.

Meanwhile, Banpu?s Mumpun Pandan in Jambi is expected to start production by 2005.

Another coalmine, Barasentosa Lestari, in South Sumatra is now on exploration stage, while East Kalimantan-based coalmine Bharinto Ekatama, which was acquired in February this year, has completed feasibility study and is planning construction.

Banpu produced a total of 11.95 million tons of coal throughout last year. The company has targeted to raise its production by 19 percent to 14.3 million tons this year. (Robert)