September 08, 2008

JSW inks coal transportation deal with K Line

PTI reported that JSW Steel and JSW Energy have signed a 10 year deal worth more than USD 200 billion with Japanese shipping firm Kawasaki Kisen Kaisha Limited for sea transportation of coking coal and steaming coal. Kawasaki Kisen Kaisha, popularly known as K Line would be transporting coal to India from Australian, Indonesian, South African and Chinese ports.

Officials of Kawasaki Kisen Kaisha said that "An en bloc deal of 10 consecutive voyage charter contracts, duration of which are for 10 year each, was concluded and signed with JSW Steel Limited and JSW Energy Limited. The total transport volume for the two companies under the en bloc deal could reach around 12 million tonnes per annum by 2015, when all the vessels enter the service."

They added that coal would be transported to the 2 companies by 10 vessels and the freight revenue from the 10 vessels is expected to be over USD 20 billion per year.

JSW Steel is set to expand the existing steel mill in Vijayanagar and to build 2 additional steel mills in Jharkhand and West Benga. JSW Energy also has aggressive plans to expand the generation capacity to 15,000 MW, including coal thermal plants and hydro power plants, by 2015.