Trans Power sets up new coal transport subsidiary

Despite the lingering downturn in the coal sector, IDX-listed shipping company PT Trans Power Marine Tbk has set up a new coal transport subsidiary PT Trans Logistik Perkasa, Kontan reported on Monday.

The paper quoted Trans Power Director Rudy Sutiono as saying that the new subsidiary is a joint venture with investment firm PT Nusantara Indah Cemerlang. Trans Power holds a 70 percent stake in the JV.

Rudy said that the new subsidiary will focus on looking for small to medium-scale coal miners as clients, while Trans Power to focus on large clients.

He was optimistic that Trans Logistik would start contributing 10-20 percent to Trans Power?s total revenue next year.

Rudy said that revenue next year is projected to grow by 20 percent, about 70-80 to be contributed by the coal transport business. He did not provide specific revenue figure.

Trans Power has allocated US$30 million for capital expenditure next year. The company has recently obtained a contract extension for another two years to transport coal for power plants operated by state-owned electricity firm PT PLN. (*)