PT Intra Asia Indonesia to build $1-billion coal port in Vietnam

PT Intra Asia Indonesia to build $1-billion coal port in Vietnam

Seeing opportunities in Vietnam's increasing demand for imported coal,
Indonesian firm PT Intra Asia Indonesia is seeking the opportunity to build
a coal port in southern Vietnam with a total investment capital sum of $1
billion.

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On August 23, PT Intra Asia Indonesia signed a memorandum of understanding
(MoU) with Hong Phat Coal and Resources Company in connection with its plan
to develop a coal port in southern Vietnam, according to newswire Jakarta
Post.

"The port will be mainly used for cargo and logistics that will serve export
and import between Indonesia and Vietnam, particularly coal," said Intra
Asia Indonesia commissioner Lutfi Ismail.

The port has a designed capacity of 15-20 million tonnes of coal per year
and would cut logistics costs for coal imports from Indonesia by a
significant margin.

The construction of the port would facilitate the sustainability of coal
exports from Indonesia to Vietnam and would help fuel power plants in the
country.

"Indonesia targets to export 4.5 million tonnes of coal to Vietnam this
year. We hope that the cooperation will boost Indonesian coal exports to
Vietnam," Lutfi Ismail added.

In recent years, coal imports have increased due to the rising demand of
domestic thermal power plants. Indonesia is one of the largest coal
exporters to Vietnam.

According to statistics published by the General Department of Vietnam
Customs, in the first seven months of this year, Vietnam imported 7.92
million tonnes of coal worth $801 million, with Electricity of Vietnam (EVN)
alone importing five million tonnes. The figure is expected to increase to
11 million tonnes by 2020 and 19 million tonnes by 2025.

EVN mostly uses imported coal to fuel coal-fired thermal power plants,
including Vinh Tan thermal power plant in the southern province of Binh
Thuan and Duyen Hai 3 and 4 thermal power plants in the southern province of
Tra Vinh, among others.

In early August, Deputy Prime Minister Trinh Dinh Dung requested the
Ministry of Transport and other relevant authorities to study plans to build
a coal port to meet the increasing demand for coal for thermal power plants
in the south.

According to the national power development plan, there will be seven
large-scale thermal power centres in the Mekong Delta, namely Long Phu, Song
Hau, Duyen Hai, Bac Lieu, An Giang, Kien Luong, and Tien Giang. The total
coal demand of these thermal power centres will reach 43 million tonnes by
2030.

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Link to Original Article:
http://english.vietnamnet.vn/fms/business/185336/pt-intra-asia-indonesia-to-
build--1-billion-coal-port-in-vietnam.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com