Adaro Logistics

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 (MBP)

MBP provides coal barging services from Kelanis to either customers’ locations in Indonesia or the mother vessels’ transshipment points at Taboneo and IBT. In 2018, the operations were supported by a fleet of 29 barge sets (tug and barge) and four self-propelled barges of around 396,500 Mt carrying capacity (adding another 45,000 dwt) and six transshipment facilities comprising four floating cranes and two floating transfer units (FTU) of 171,600 Mt per day throughput rate, an increase from 28 barge sets of 366,500 Mt and five transshipment facilities of 138,500 Mt in 2017. The additional barge sets increased barge availability by 4%, from 91% in 2017 to 95% in 2018, which partly covered the 11% increase in the barging tonnage, from 42.7 Mt in 2017 to 47.6 Mt in 2018.

In 2018, the portion of the Adaro Group’s coal barged by MBP increased to 96% from 95% in 2017 due to the higher production of the group’s mining operations. Even though the group’s growing operations provide it with a large captive market, MBP still pursues to expand third-party relationships by offering quality logistics services with stronger barging equipment that can better withstand rough weather conditions.

PT Sarana Daya Mandiri (SDM)

SDM commenced operations with the capital dredging of the Barito River channel in 2008. This project has allowed the channel to be navigable for two way traffic on a 24-hour basis from 1 st January 2009. Since then, SDM has maintained the width and depth of the 15-km channel through regular dredging to keep it safe for navigation.

The Barito channel has recorded a steady increase in traffic over the years. The cargo volume passing through the channel in 2018 totaled 110.7 Mt, or 12.04% higher than 98.8 Mt in 2017. With the capacity of accommodating up to 200 Mt of coal per year, the channel still has ample room to accommodate higher volumes. For proper monitoring and control of the traffi and navigational safety, SDM ensures that its surveillance equipment is at operable condition at all times.

In 2018, SDM continued to carry out two notable operations: supervising dredging activities and conducting bathymetry surveys. Dredging supervision was rendered in Kelanis and Ujung Rumput under the appointment of HBI and MBP, respectively. Meanwhile, bathymetry surveys were performed in South, East, and Central Kalimantan to examine channel navigability and the requirements for dredging. In the next year, SDM will conduct bathymetry survey at the location of its newly acquired sister company BGN as part of the dockyard’s expansion to accommodate bigger barges.

Going forward, SDM will offer more comprehensive services related to dredging activities by capitalizing on its expertise in the field and familiarity with the Barito channel.

PT Indonesia Bulk Terminal (IBT)

IBT’s terminal on Pulau Laut, an island off the southeastern coast of South Kalimantan province, is the only public port that offers integrated coal handling and fuel handling services in the area. The coal handling services include coal ship-loading, temporary stockpiling and coal blending services for customers to source coals from different locations as they consider economical and blend them at IBT’s location according to their requirements.

Customers favor IBT’s facilities that can load vessels of up to 80,000 dwt in less than two days and an annual throughput capacity of 12 Mt, in addition to a feature that can help to detect and separate metal contaminants in coal before it is loaded to vessels.

IBT renders fuel handling services by providing four fuel tanks of 80,000-kiloliter storage capacity and two jetties with loading capacity of 1.4 million kiloliters. Upgrade is underway to increase the loading capacity to 1.8 million kiloliters.

For the Adaro Group, IBT is a high capacity back up to Taboneo transshipment operations and a location for sourcing fuel, an important component of the group’s pit-to-power operations. IBT will continue to expand relationships with third parties, especially miners in the central, south and southeast regions of Kalimantan Island, who can benefit most from the port’s strategic location and modern facilities.

IBT has formed a strategic alliance with Pertamina, a prominent state oil company, who has approved the port as a location for blending B20 fuel, making it one of the only two ports on the island that have obtained such approval.

PT Indonesia Multi-Purpose Terminal (IMPT)

IMPT manages the Taboneo offshore terminal under a port business entity license awarded by the Ministry of Transportation. All offshore loading operations are managed and monitored from a flatting command center equipped with sophisticated satellite communications and GPS tracking systems, where an officer guides vessels calling at this anchorage to achieve a quick turnaround time (TRT) from arrival to departure.

On 15th September 2018, IMPT and the Port Authority of Banjarmasin signed a concession agreement under which IMPT holds the right to carry out commercial operations at Taboneo. Prior to obtaining this concession, IMPT had to carry out trial operations for a few years to demonstrate its capability to conduct orderly port operations.

The operations included port control and vessel placements in well-defied vessel waiting area and coal transshipment area that separates vessels of different sizes, such as Handymax, Panamax, and Capesize. These activities have significantly enhanced the safety of vessel navigation into and out of Taboneo and the transshipment process at the port.

IMPT also holds an environmental impact license and a certificate of compliance with the International Ship and Port Facility Security (ISPS) Code, which it has maintained since 2015. The license and certificate represent the company’s high standard of safety and security for port operations.

PT Puradika Bongkar Muat Makmur (PBMM)

PBMM has been rendering cargo stevedoring services at Taboneo since June 2013 and Kelanis since the 3rd quarter of 2017. In 2018, PBMM added 24 units of heavy equipment (loaders and dozers) to its fleet to reduce the use of third-party services in accommodating the Adaro Group’s stevedoring requirements. PBMM recorded higher stevedoring tonnages in 2018, which consisted of 35.5 Mt by gearless vessels, 6.4 Mt by geared vessels and 53.6 Mt for stevedoring at Kelanis, an increase from 33.2 Mt, 5.0 Mt and 16.6 Mt, respectively, in 2017.

The excellent growth of transshipment activities at Taboneo promises great market potentials to PBMM for pursuing new relationships with third parties, in addition to serving its sister companies within the Adaro Group.

PT Harapan Bahtera Internusa (HBI)

HBI runs two major business activities: shipping administration and shipping agency services for Adaro Indonesia (AI) at Kelanis Dedicated Coal Terminal (Kelanis) and fuel barging from IBT’s Pulau Laut terminal to Kelanis. For shipping administration services, HBI performs various activities such as scheduling the in-and-out movements of barges, coal-loading activities and berthing-anddeberthing of barges, and assist-tug services, while for shipping agency operations, HBI renders port clearance services.

In 2018, HBI’s agency business increased the number of third-party calls by 11% to 326 calls, from 295 calls in 2017. HBI also increased fuel transportation capacity by two folds with the addition of one fuel barge to accommodate higher volume from the Adaro Group, and its two fuel barges transported 50% of AI’s fuel requirement in 2018. In the same year, HBI continued the dredging activity at Kelanis to serve bigger barges calling at the coal terminal.

Barito Galangan Nusantara (BGN)

AL continuously expands its fleet to accommodate the growing volumes from both the Adaro Group and third-party customers. Along with operating, a bigger fleet comes the necessity for carrying out proper maintenance activities so AL must have a reliable dockyard that can serve its fleet any time it is required, to avoid logistics disruptions due to barge breakdowns, which may lead to costly implications.

This is the rationale behind AL’s acquisition of BGN in 2018. BGN is an operational dockyard located in Barito Kuala District on the Barito River, around 7.4 km from MBP’s office in Banjarmasin. BGN also complements AL’s extensive logistics operations by ensuring the quality and constant availability of maintenance services. Since acquiring BGN, AL has made considerable investment to upgrade and expand the facilities to accommodate AL’s bigger barges and the group’s growing operations. In the next year, AL will assign SDM to conduct bathymetry survey at BGN’s location and BGN will continue to expand third-party business.

Last modified on May 6, 2019, 2:57 pm | 26995