Transhipment News

Transhipping coal in Kalimantan
Indonesia is the world’s eighth-largest producer of coal but, with limited domestic consumption, it is one of the world’s leading exporters of the commodity, second only to Australia. Indonesia accounts for nearly 15 percent of the world’s coal export.

Exporting coal from Indonesia is far from simple: the coal is often mined in very remote areas without access to deep water. This means that a large proportion of exports has to be barged far off shore – often as much as 25 miles from the coast – and transhipped from the barges onto ocean-going vessels.

Back in the late 1990s, we found that the vast experience CSL had gained operating self-unloaders would give us a significant competitive advantage in designing, building and operating transhippers. We started discussions with Berau Coal, one of the largest coal mining companies in Indonesia. Berau had secured concessions to mine and export coal, but was restricted by shallow water. CSL custom designed a sophisticated transhipment platform that enabled Berau to load large vessels (up to Capesize), thereby gaining access to lucrative Asian export markets.

With the usual focus on innovation, CSL chose to build the platform based on a semi-submersible design, unique for transhippers but well tested in the offshore exploration and drilling industry.
CSL was awarded a 10-year contract and, toward the end of 2000, the Semi- Submersible Transhipper Berau, or SST Berau, designed to tranship in excess of 3.5 million tons of coal annually, commenced operations in waters about 20 miles off East Kalimantan.

The conditions in the area are harsh; the transhipment point is about two hours off shore by launch, the operation is round-the-clock in varying weather conditions with ocean-going vessels ranging from Handysize to Capesize coming in for loading. Nonetheless, the design was a success and, as of the end of 2009, the SST Berau has moved nearly 30 million tons of coal.

Berau Coal expanded their production and, by 2006-07, discussions to add a second transhipper were well underway. While the SST Berau design was a success, CSL had continued to gain experience and develop new technologies, both in Indonesia and from our global
operations.

In September 2007, CSL, in partnership with the Andhika Group, signed a second 10-year contract to design, build, operate and own a second Floating Offshore Transhipment Platform (FOTP) for Berau Coal. This new platform is designed to tranship up to 6.0 million tons of coal annually at rates in excess of 1,500 tons per hour. FOTP Derawan is a thirdgeneration design reflecting the best attributes, design and technology found on the SST Berau, the FOTB Spencer Gulf and the M.V. Eastern Power. The Derawan incorporates:

• The hull design from the FOTB Spencer Gulf (CSL Australia’s transhipper)
• The generator package from the FOTB Spencer Gulf
• The mooring and ranging system from the FOTB Spencer Gulf
• The crane-based unloading system (2 x 35.0 metric ton lift capacity Tsuji cranes) found on
  vvthe M.V. Eastern Power
• The bucket lift elevator found on the SST Berau
• The telescopic boom found on the SST Berau and FOTB Spencer Gulf

The FOTP Derawan was delivered in June 2009 and commenced operations on July 29, 2009. The design phase, the construction and commissioning can only be described as a comprehensive success. The platform has performed well above contractual requirements from the start of operations.

CSL not only tested technological barriers in Indonesia, we also had to respond to a dramatically changing regulatory environment. Indonesian authorities started classifying transhipment activities as cabotage trading, which meant the transhipment platforms had to be transferred to Indonesian flag. By the end of 2009, along with our Indonesian partner of many years, the Andhika Group, CSL developed a solution that allowed the transfer of the two platforms to a new Indonesian entity,
commercially and operationally controlled by CSL. This was achieved with minimal disruption to the cargo operation.

Today, CSL continues to be a leader in the Indonesian coal transhipment trade, with superior technology, a strong technical and commercial setup and well established partnerships. The two transhippers today operate at full capacity. As Indonesian coal exports modernize and grow, CSL will be in a very good position to continue to develop our activities in this exciting part of the world.

Jakob Hansen
Managing Director, CSL Asia