PT Adaro Logistics
Among the key challenges faced by Adaro are transportation and logistics. Adaro Indonesia has one of the furthest inland coal mines in Indonesia. It is located 80km from the barge-loading river port at Kelanis and a further 240km from the transshipment location at Taboneo in the Java Sea.
PT Adaro Logistics (AL) is tasked with coordinating and managing the logistics arm of our coal supply chain. AL has integrated the activities of our logistics business units to enhance its value as an integrated port-to-port logistics service provider to Adaro.
AL contributes significantly to Adaro’s integrated coal supply chain, starting from loading coal on to barges at Kelanis to transporting and delivering the coal at the discharging points or ports.
Through synergized planning, AL strengthens the business process from coal barging and transshipment, to the operation of the land-based coal assembly and ship-loading terminal, to port management for stevedoring and coal transshipment activities at Taboneo anchorage, and lastly to managing the availability of the Barito River channel by dredging the channel regularly.
AL’s vision is to become a reliable, efficient and best-managed Indonesian logistics company. It aims to ensure high-quality health and safety standards with environmental best practices to enhance the businesses that in return benefit stakeholders and communities.
As a coal-focused logistics provider, the outlook for AL is affected by the outlook for coal. At Adaro, we believe that the long-term fundamentals for coal remain intact. We do, however, want to improve our non-coal mining activities such as logistics, mining services and power.
Apart from the coal industry, the outlook for the logistics business in Indonesia is reassuring. The government has made the maritime sector one of its priorities, and it plans to build more ports and water tollways to connect the archipelago.
Because of this, AL plans to increase its strategic diversification into non-coal bulk materials as well as materials related to the oil and gas industry. AL will take these strategic moves to reduce its dependence on the coal industry and to open up new opportunities for future growth.
Furthermore, more barging and shiploading services will be required to transport coal to domestic power plants in the next five years, as the government works to increase Indonesia’s coal-fired power generation capacity by 20GW.
The following are the core subsidiaries co-ordinated by Adaro Logistics in our coal supply chain.
PT Maritim Barito Perkasa
PT Maritim Barito Perkasa (MBP) has been a key barging contractor for PT Adaro Indonesia since 2009, providing coal transportation services from the Kelanis inland barge-loading terminal on the Barito River to the Taboneo offshore anchorage and to the South Pulau Laut Coal Terminal.
In addition, MBP transports Adaro’s coal directly to domestic customers on Java. MBP also provides coal transportation services to third parties.
MBP operates to barge coal cargos from Kelanis to either directly to customers’ locations in Indonesia or to the mother vessels’ transshipment points at Taboneo and IBT. MBP’s fleet consists of 28 towed and self-propelled barges of 366,500 Mt carrying capacity and five transshipment facilities comprising four floating cranes and one floating transfer unit (FTU) of 138,500 Mt per day throughput rate.
Although a substantial portion of its cargos comes from the Adaro Group, MBP has attracted third-party customers and sign long-term contracts with them by offering self-propelled barges that can better sustain rough weather conditions. In 2017, MBP decided to expand its barging fleet by adding three barges of total 45,000 dwt to replace smaller barges and improve operational efficiency.
MBP increased barge availability by 6% from 85% in 2016 to 91% in 2017. This increase partly covered the 11% increase in the barging tonnage from 38.5 Mt in 2016 to 42.7 Mt in 2017. Currently AI constitutes 95% of MBP’s barging volume, and the Adaro group’s rapid expansion, especially with AMC’s production underway, means MBP will have bigger captive markets. Meanwhile, MBP will also continue to expand business relationships with third-party customers.
PT Sarana Daya Mandiri
SDM successfully completed the capital dredging of the Barito River channel in 2008 and allowed the channel to be operational from 1 January 2009. Since then, SDM has been conducting regular dredging along the 15-km of the channel to maintain its width and depth, thus ensuring that it is safe and navigable on a 24-hour basis throughout the year.
The traffic in the channel has increased steadily over the years, with barge and cargo volumes passing through this channel in 2017 increased by 7.06% and 4.66%, respectively, compared to 2016. This higher traffic had encouraged SDM to build another radar station, which was completed in March 2017. The new radar is a solid state surveillance radar with thermal camera that enables the operator to have night vision. This state-of-the-art radar has the ability to tap into Vessel Traffic System so it will significantly improve the monitoring and control of traffic and navigational safety.
In 2017, SDM carried out bathymetry survey assignments in South Kalimantan and East Kalimantan, among others in Pulau Laut, Ujung Rumput, Marabahan, and Mahakam River. SDM also supervised dredging activities in Kelanis under the appointment of HBI, expanding SDM’s operations team beyond the Barito River channel.
PT Indonesia Bulk Terminal
IBT runs a port management business from its location on Pulau Laut, an island off the southeastern coast of South Kalimantan province. Certified under the ISPS Code and extensive facilities, IBT has the capacity to offer integrated coal handling services ranging from coal ship-loading and temporary stockpiling to coal blending services customized to the customers’ requests. IBT constitutes an essential part of the Adaro Group’s operations by serving as a high capacity back up to Taboneo transshipment operations. Its strategic location for coal handling is especially favored by miners operating in Central, South & Southeast Kalimantan, who can benefit most from the company’s extensive and modern facilities, reliable operations, and high capacity.
IBT has an annual capacity of 12 Mt and is able to load vessels with capacity of up to 80,000 dwt in less than two days. In 2017, IBT loaded a total of 3.2 Mt of coal, almost all of which was Adaro Group’s coal. IBT also owns fuel storage facilities consisting of four fuel tanks with 80,000-kiloliter storage capacity and two jetties with a loading capacity of 1.4 million kiloliters per year, which can be used by its customers to ensure fuel supply to their customers in reliable manner.
Due to its strategic alliance with PT Pertamina (Persero), in 2017 IBT’s fuel throughput increased by 34% compared to 2016, which mainly came from third parties volumes. IBT’s fuel storage facilities are also an important part of Adaro Group’s operations as fuel is needed by the operations along the group’s vertically integrated pit-to-power supply chain.
PT Indonesia Multi-Purpose Terminal
IMPT holds a port business entity license from the Ministry of Transportation that allows it to manage and operate the offshore Taboneo anchorage. It is in the process of preparing a concession agreement with the Port Authority of Banjarmasin, which will allow IMPT to commence commercial operations of the terminal. As part of this process, since 2016, IMPT has been carrying out trial operations, including vessel placements and port control as instructed by the port authority. The trial was satisfactory as IMPT has demonstrated the capability to have an orderly port operation: well-defined vessel waiting area and coal transshipment area that separates Handysize to Capesize vessels. This has improved the safety of vessel navigation into and out of the anchorage port as well as the transshipment operations at Taboneo.
In 2015, IMPT obtained an environmental impact license and a certificate of compliance with the International Ship and Port Facility Security (ISPS) Code. IMPT has maintained this certification until now, demonstrating its high standard of safety and security for port operations.
PT Puradika Bongkar Muat Makmur
PBMM has handled cargo stevedoring services at Taboneo since June 2013 and Kelanis since the 3rd quarter of 2017. In 2017, PBMM’s stevedoring tonnages consisted of 33.2 Mt by gearless vessels, 5.0Mt by geared vessels and 16.6 Mt for stevedoring at Kelanis. In the same year, PBMM invested in heavy equipment to reduce the use of third-party services in stevedoring operations, thus minimized the risk of coal contamination in the process as the company had full control over operations and deployed brand new heavy equipment. This investment is also a part of continuous improvement initiatives currently pursued across the Adaro Group. It generated operational cost saving of almost 20% for PBMM and thus improved its profitability.
PT Harapan Bahtera Internusa (HBI)
HBI is a shipping company provides shipping administration services and shipping agency at Kelanis and fuel barging from IBT to Kelanis for AI. The shipping administration services include, among others, scheduling the in-and-out movements of barges, coal-loading activities and berthing-and-deberthing of barges, assist-tug services, while shipping agency operations comprise port clearance services.
In 2017, after adding one fuel barge to its operations, HBI doubled its fuel transportation capacity to accommodate more fuel barging volume from AI. Currently, the two barges operated by HBI transport 50% of AI’s fuel requirement. HBI also conducted a dredging activity at Kelanis to serve bigger barges calling at the coal terminal and added a new customer for its shipping agency business to expand businesses with the third parties.