December 04, 2008

PT Arpeni bags major coal transportation contract

Bloomberg reported that Indonesia's third largest shipping company by value PT Arpeni Pratama Ocean Line won a coal contract that may boost revenue by 20% in 2008.

Mr Oentoro Surya president director in a telephone interview said that “Arpeni Pratama won a IDR 3.1 trillion (USD 330 million) contract to deliver 4 million tonnes of coal to feed the Tanjung Jati B power plant in Central Java annually as well as manage a jetty for 15 years.”

He added that the contract is expected to increase the company's sales by as much as 20% next year after a gain of 16% to IDR 1.3 trillion in 2006.

Indonesia is promoting the use of coal and gas to cut fuel costs in power generation after crude oil prices surged to a record this year. Shipping companies including Arpeni and PT Berlian Laju Tanker are expanding their fleets on rising demand to transport commodities in the domestic and overseas markets.