UT to produce tugs and barges this year

By Hiski Darmayana

Through its subsidiary PT Perkasa Melati, PT United Tractors (UT), Indonesian major heavy equipment distributor, plans to produce four sets of tugs and barges this year to support the transportation of the company?s coal production.

Loudy Irwanto Ellias, UT?s corporate director, told Petromindo.com on Monday that the four tugs and barges would have capacity of 5,500 tons each. They would be used to transport coal production from UT?s own coal mines in South and Central Kalimantan.

He said that next year the company would produce bigger tugs and barges with capacity of 8,000 tons. ?In the coming years, we will also build ships for the transportation of oil and gas, and also crude palm oil (CPO),? he said after the company?s annual general shareholders meeting on Monday.

This year, UT expects to produce 4.5 million tons of coal from the company?s two coal mines in South and Central Kalimantan. Up to March, the company?s production has already reached 1.2 million tons.

The company?s Vice President Gidion Hasan said that this year?s production level would be lower than that of last year because the coal price in the world?s market is still relatively low. ?About 30 percent of the coal production is exported to Japan, and the remainders are sold to traders and domestic buyers,? he said at the same occasion.

In heavy equipment sector, UT has targeted its sales this year to reach 5.000 units. The target is lower than last year target at 6,200 units.

?This is because we see that this year demand for heavy equipment will drop as compared to that of last year, particularly in coal mining,? the company?s President Director Djoko Pranoto said, also at the same occasion.

Editing by Benget Besalicto Tnb