Transcoal completes preliminary study on coal canal for PTBA
Friday, January 16 2004 - 03:00 AM WIB
The canal will connect the coal mine to Musi Banyuasin River, through which PTBA's coal will be transported to a port in Bangka island.
?In the preliminary feasibility study, they propose coal transportation fee via the canal to a port in Bangka island at about US$8 per ton of coal. But, we want the price to be lowered to $5 per ton,? PTBA?s president Ismet Harmaini told in a public expose on Thursday, adding that the consortium had yet to finalize a comprehensive study for the project.
Once the FS is agreed upon by PTBA, the consortium will also develop the canal.
PTBA depends on ailing state railway company PT Kereta Api Indonesia (PTKAI) for its coal transportation, and is unable to increase production of around 10 million tons per year due to limited capacity of PT KAI.
Under a two-year coal transportation tariff agreement, PTKAI charges PTBA Rp 37,000 or approximately $4.43 (US$=Rp8,345) per ton for coal transported to Tarahan with minimum volume of 7.05 million tons. Meanwhile, coal transportation fee to Kertapati coal port in Palembang is set at Rp 20,000 per tons, with minimum volume of 1.35 million tons.
In order to find options to boost its coal transportation volume, in February last year, PTBA asked the consortium to conduct an FS for the construction of a 140-km canal worth around $400 million with a capacity of 20 million tons of coal per year.
Aside from the canal transportation, PTBA also in studying to transport its products through railway from Kertapati to Tanjung Api-Api port-planned in Palembang.
PTBA operates two coalmines in South Sumatra and West Sumatra provinces with a total mineable reserve of 1.5 billion tons of coal. PTBA produced around 9.9 million tons of coal in 2003 and its output has targeted at 10.3 million tons this year. (robert)