New tariff scheme at Muara Berau Port could hamper coal export

Muara Berau Port Tariff Policy Has the Potential to Disrupt Coal Supply to PLN

The port service tariff policy that will be implemented at Muara Berau Port is expected to impact the coal supply for power plants.

Hendra Sinadia, the Executive Director of the Indonesian Coal Mining Association (APBI) stated that, in addition to affecting mining companies, this new policy could also have repercussions for other associated sectors.

“Potential shipping obstacles could disrupt the smooth supply of coal to PT Perusahaan Listrik Negara (PLN),” said Hendra to on Sunday (1/10).

Hendra elaborated that at least 17 shipping companies would be influenced by the new tariff implementation. Besides, other parties with potential impacts include stevedoring companies, floating crane rental companies, and floating loading facility companies.

Moreover, APBI is concerned that this tariff scheme change might extend to other transshipment ports.

“It’s possible that after passing the tariff in Muara Berau, a similar policy might be implemented at other transshipment ports,” said Hendra.

Earlier, there were concerns that the coal loading and transfer process at Muara Berau Port in Samarinda might face obstacles due to plans to implement port service tariff recommendations starting from October 1, 2023.

Annually, over 90 million tons of coal are exported and used domestically from this port. This process is projected to face disruptions.

The Ministry of Transportation provided recommendations for port service rates to PT Pelabuhan Tiga Bersaudara (PTB), a Port Business Entity (BUP) at Muara Berau Port, Samarinda, on July 24, 2023. PTB manages the concession granted by the Government for 25 years.

According to shippers, the new tariff will increase costs by approximately USD 0.8 per metric ton for gearless ships and around USD 0.42 per metric ton for geared and grabbed ships. These rates will be accepted by PTB without providing additional services.

Image source >>> KONTAN/Cheppy A. Muchlis

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