Malaysian Scomi Marine announced that it had received a letter of intent from TNB Fuel Services Sdn Bhd, a wholly owned subsidiary of TNB, for a contract to carry bulk coal for the latter. “The contract signifies a breakthrough for Scomi Marine in our involvement in the key supply chain of coal. It involves the transportation of coal from country to country, which is an extension to our existing operations in Indonesia, which is mainly in tugs and barges,” a company official said.

The coal supply contract will be for three years, with an option for TNB Fuel to extend another two years. The total quantity of coal to be transported will be 500,000 tonnes per annum. The announcement, however, said the quantity of coal and the distance to be transported from the different countries had yet to be finalized.

Currently, Scomi Marine's coal transportation business in Indonesia involves over 100 tugs and barges. In 2005, the company transported approximately 30 million tonnes of coal in total for its customers.

By 2010, Malaysia is expected to consume 20 million tonnes of coal a year.