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Cokal inks agreements to develop Shallow Draft Barging on the Barito River

Coal News - Published on Tue, 22 Jan 2019

Image Source: Kalkine Media
Cokal Limited announced the signing of a non-binding Heads of Agreement (HOA) with An PhatLoc General Trading Co. Ltd (An PhatLoc) from Nam Dinh Province of Vietnam to jointly develop shallow draft barging on the Barito River to transport metallurgical coal directly from the PT Bumi Barito Minerals (BBM) project area.

Cokal's CEO and two senior Cokal mining experts visited An PhatLoc in Vietnam in late December, to inspect a four barge tow in operation on the Red River in Vietnam. All barges and the push boat were built by An PhatLoc and are now operated by its logistics company. Cokal's team was impressed with the quality of the barges produced by An PhatLoc and confident that they can be relied upon to transport BBM coal from its mine adjacent to the Barito River.
An PhatLoc sent a team in early January to inspect the upper part of the Barito River adjacent and downstream from the BBM project. Following their site inspection at BBM, the An PhatLoc team met with Cokal's team in Jakarta and signed a Confidentiality and Non Circumvention Agreement.

From discussions in Jakarta, the teams agreed in principle on suitable specifications of the barges and push boat design. Barges built by An PhatLoc carrying 1,700 tonnes of coal can be designed to operate in 3m water depth. If the load is reduced to 1,000 tonnes they will be able to operate in 1.95m water depth. This will enable successful barging operations to be undertaken from Cokal's BBM mining operation over significantly longer periods than conventional draft barges currently used in Indonesia.

A proposed schedule was agreed to finalise boat specification and negotiate commercial terms to purchase four barges and a push boat with delivery to the Barito River by mid-2019.

Source :

Posted By : Rabi Wangkhem on Tue, 22 Jan 2019
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