PT Adaro Logistics
PT Adaro Logistics (AL) manages a number of companies that make up the Adaro Group’s logistic pillar, operating to strengthen the group’s pit-to-power supply chain by keeping the costs and process of transporting coal from the loading port to the discharging port in check. AL was established to support its sister companies by ensuring that their coal deliveries reach customers’ locations according to the agreed schedule, specifications and quality. After seven years of operations, AL has secured a stronger foothold in the logistics sector, running an extensive range of activities from coal barging and ship loading, channel dredging and maintenance, stevedoring to dockyard.
As the logistics pillar for the Adaro Group, AL is one of the group’s vehicles for expanding non-coal mining businesses. As such, AL continuously expands its business to offer a wider range of integrated logistics services and its clientele to generate bigger income by utilizing its scale of operations. Furthermore, AL also continuously improves its organization for more effective and efficient operations.
The Adaro Group has grown tremendously by completing its pit-to-power-plant supply chain by adding a lot of companies along the chain. To achieve operational excellence, its complex operations must be streamlined by eliminating waste (unnecessary or redundant activities) in work processes and the processes must be synergized to produce better quality with a lower cost and higher productivity. In March 2019, AL made a breakthrough strategy to integrate fuel transport from IBT to Kelanis Dedicated Coal Terminal (Kelanis) for AI and SIS’s fuel cargos, which constituted the largest portion fuel consumption within the Adaro Group, in addition to the fuel of AMC and two AI’s contractors. Prior to this program, these companies sourced and transported their fuel individually from and by different vendors, thus fuel and fuel transportation costs were higher. Under this program, the joint fuel cargos of these companies, transported by another AE’s subsidiary HBI, saved US$1.06 million within around ten months. Given the considerable cost saving and guaranteed reliability, the program shows a great potential to be extended to include other subsidiaries.
The following are the core subsidiaries co-ordinated by Adaro Logistics in our coal supply chain.
PT Maritim Barito Perkasa (MBP)
MBP operates by barging coal from Kelanis Dedicated Coal Terminal (Kelanis) port to customers’ destinations in Indonesia or to the mother vessels’ transshipment points at Taboneo or IBT. As at the end of 2019, MBP had a fleet of 33 barge sets (tug and barge) and four self-propelled barges (SPBs) with around 455,000 tonnes of carrying capacity and six transshipment facilities comprising four floating cranes and two floating transfer units (FTU) with 162,000 tonnes per day throughput rate.
In 2019, MBP made an investment to expand its barge fleet by ordering third-party shipbuilders to build five barges of 15,000 dwt, three tug boats of 3,200 hp and one tug boat of 1,200 hp, which will be ready in 2020. The new barges will replace the chartered barges and increase operating cost efficiency.
In 2019, MBP served its sister companies AI by barging 47.57 Mt of its coal. MBP also continued to serve AMC by barging coal along the Barito River from Muara Tuhup port to intermediary stockpile (ISP) in South Barito district, to IBT’s Pulau Laut port, and to Taboneo port, and from ISP to Pulau Laut port and Taboneo port. The stretch from Muara Tuhup port to ISP is particularly challenging for MBP due to its shallow water, forcing MBP to come up with strategies effective for optimizing throughputs, such by using small size barges and optimizing scheduling to avoid waiting time at ISP. In 2019, AMC’s coal barged by MBP totaled 0.99 Mt.
MBP will keep expanding its fleet to both accommodate its captive market from the Adaro Group with higher level of cost efficiency and build more third-party relationships by offering the extensive experience it has accumulated from serving a large-scale of coal operations and stronger barging equipment that can better withstand rough weather conditions. In 2019, MBP barged 1.8 Mt of coal for third party customers.
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 1st 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. For proper monitoring and control of the traffic and navigational safety, SDM ensures that its surveillance equipment is at operable condition at all times.
The Barito channel has recorded a steady increase in traffic over the years. The cargo volume passing through the channel in 2019 totaled 117.21 Mt, or 5.91% higher than 110.67 Mt in 2018. This increase was attributable to the increase in the cargo of both the Adaro Group and third parties. With the capacity of accommodating up to 200 Mt of coal per year, the channel still has ample room to accommodate higher volumes.
In 2019, 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. SDM also performed bathymetry at the location of AL’s newest subsidiary company, BGN, as part of the development preparation to allow this dockyard company to accommodate bigger size barges.
PT Indonesia Bulk Terminal (IBT)
IBT offers two main services from its Pulau Laut terminal at the southeastern coast of South Kalimantan province: coal handling and fuel handling. The coal handling services consist of activities like coal ship-loading, temporary stockpiling, and coal blending services. IBT’s coal blending facilities enable the customers to purchase coals from various sources where they find most economical and get IBT to blend the coals according to their requirements and thus reduce the production costs. IBT also provides facilities that can load vessels of up to 82,000 dwt type (Kamsarmax) in less than two days and an annual throughput capacity of 12 Mt, added with a feature that can help to detect and separate metal contaminants in coal before it is loaded to vessels.
For fuel handling services, IBT is equipped with four fuel tanks of 80,000-kiloliter total storage capacity and two jetties with loading capacity of 1.4 million kiloliters/year. In 2019, IBT prepared the project for building fuel and FAME (fatty acid methyl ester) in-line blending facility to improve the quality and increase the speed of blending activities to result in more homogenously blended biofuel and higher loading capacity, i.e. up to 1.8 million kiloliters/year.
IBT plays an important role for the Adaro Group by standing by as 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 integrated operations.
Although it still mainly serves the Adaro Group, IBT will pursue more relationships with third parties, especially the coal miners of the central, south and southeast regions of Kalimantan Island, for whom IBT’s location and its comprehensive facilities are most strategic. Since 2015, IBT has maintained a strategic alliance with Pertamina, a prominent state oil company, who has approved the port as a location for blending biodiesel, 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 floating terminal under a port business entity license awarded by the Ministry of Transportation. All offshore loading operations are managed and monitored from a floating command center equipped with adequate satellite communications and GPS tracking systems, where an officer guides vessels calling to the transshipment area to achieve a quick turnaround time from arrival to departure.
After obtaining the concession from the Port Authority of Banjarmasin on September 15, 2018 for the right to carry out commercial operations at Taboneo, on May 10, 2019 IMPT officially commenced operations. The operations included port control and vessel placements in coal transshipment area by separating vessels based on sizes, such as Handymax, Panamax, and Capesize. IMPT’s officer places vessels at well-defined vessel loading points and monitors all activities performed on the vessels, including stevedoring activities.
In carrying out these activities, IMPT prioritizes the port’s safety and security as guided by the environmental impact license and a certificate of compliance with the International Ship and Port Facility Security (ISPS) Code it has maintained since 2015. As a result, these activities have significantly enhanced the safety of vessel navigation into and out of Taboneo and the transshipment process at the port.
PT Puradika Bongkar Muat Makmur (PBMM)
PBMM offers cargo stevedoring services to ensure safe loading activities using proper procedure and equipment. It started operating at Taboneo in July 2013 and Kelanis in the 3rd quarter of 2017. In 2019, PBMM recorded 44.0 Mt stevedoring tonnages, an increase of 4.79% from 41.99 Mt in 2018. This increase was attributable to the volume from AI.
PBMM has a captive market from the extensive shipping operations of the Adaro Group in addition to benefitting from the transshipment activities at Taboneo organized by its sister company IMPT. Although until 2019, all of its revenue was still generated from the Adaro Group, the growing transshipment activities in Taboneo area promises a huge third-party market potential for PBMM, which can use its existing capacity to expand business scale.
PT Harapan Bahtera Internusa (HBI)
Ship Administration and Management Services (SAMS).
HBI serves AI at Kelanis by carrying out various shipping administration tasks such as scheduling the in-and-out movements of barges, coal-loading activities and berthingand-unberthing of barges, and assist-tug services.
HBI increased the volume of SAMS services to 4,584 calls in 2019, from 4,398 calls in 2018. These figures include MBP and third-party calls.
HBI still continued the dredging activities in Kelanis to ensure that the port can accommodate the size of its barges.
HBI transports fuel from IBT’s Pulau Laut terminal to Kelanis. In 2019, HBI added one fuel barge to its existing two barges to accommodate more fuel barging volume for AI and transported 399 million liter of fuel, increased 28% from 312 million liter fuel transported in 2018.
Barito Galangan Nusantara (BGN)
MBP’s growing barge fleet must be supported with reliable maintenance facilities that can readily provide the service by fitting into the barges’ schedules and requirements to ensure smooth operations and avoid costly logistics disruptions due to barge breakdowns. Therefore, in 2018, AL purchased an operational dockyard in Barito Kuala district on the Barito River and established PT Barito Galangan Nusantara (BGN). AL has made considerable investment to develop BGN to meet AL’s quality standards and accommodate the company’s larger barges and scale of operations.
In 2019, BGN’s development was focused on upgrading the equipment, getting certification for key personnel, upgrading and standardizing work processes, and establishing and implementing safety standards, by placing personnel according to the company’s manpower plan to fulfill the required number and competencies of personnel, formulated by adopting the Adaro Group’s standards. As of the end of 2019, BGN had served 19 barges and 22 tugboats of MBP and third parties.