Tanjung Jati B will take over shipment contract for its coal supply

Major coal-fired power plants in Java, Tanjung Jati B (2 x 660 MW) will take over the shipment contract of its coal supply from major coal supplier PT Kaltim Prima Coal and PT Berau Coal so that the coal from the two companies can be transported by a local ship in line with the regulation of the ministry of transportation which prohibits the use of a foreign ship in the transportation of coal in the country, Bisnis Indonesia reported on Wednesday.

"We have asked the suppliers to use a local ship but they refused to do so. That's why we will takeover the shipment contract and appoint a local ship to handle the shipment," Tanjung Jati B?s general manager Affianto Hapsoro said in Jakarta on Tuesday.

The use of a foreign ship can cause a problem to the company because if the operation of the foreign ship is banned, it would disrupt Tanjung Jati B's coal supply, he added.

Earlier, Ministry of Transportation has cancelled temporary license given to Singapore-flagged handymax vessel MV Jawa Power to transport coal from Samarinda to Tanjung Jati B.

According to him, Tanjung Jati B would soon sign a contract with a local shipping company to handle the coal shipment from KPC and Berau Coal to ensure that there will be no coal supply disruption in the future.

Affianto said that Tanjung Jati B would also review the coal supply contract with both KPC and Berau Coal because the existing contract has also included the transportation cost.

KPC and Berau Coal has contracts to provide 2 million tons and 1 million tons a year, respectively to Tanjung Jati B.

Affianto said that the shipping company should at least carry out five shipments a month. However, the ship only carried out one shipment this month," he said. (*)