October 13, 2008

Chinese ships recalled in coal transport drive

It is reported that some cargo ships used overseas have been called back or refitted to join a nationwide coal transport drive as many parts of China are now on the verge of losing power as supplies are low after snowstorms have largely disrupted rail and road shipments of coal.

China Cosco Co has recalled 11 cargo ships from its oversea routes while China Shipping Co also transformed four oil tankers in order to transport coal to energy starved regions,

Mr Fu Jinxiu an official of ministry of communications said "The 11 ships from China Shipping can carry 760,000 tons of coal. The four ships from COSCO can carry 80,000 tons. That should greatly ease the shortage."

About 5% percent of the country's coal fired power plants have been shut down, forcing 13 provinces to ration electricity as snowfalls and transport delays hamper deliveries. The five biggest electricity producers have shut 90 power stations with a combined capacity of more than 20,000 MW in northern and central China. Coal stockpiles at the plants have dropped below the caution line of three days' requirements.

Railway congestion as millions of Chinese travel before the Lunar New Year holiday and heavy snowfalls have contributed to the lack of coal.