Indonesian Firm to Build $1-Billion Coal Port in Southern Vietnam

Tuan Minh

21:26 24/08/2017

BizLIVE - PT Intra Asia Indonesia has signed a memorandum of understanding with its Vietnamese partner for a plan to construct a $1-billion coal port in southern Vietnam as the country needs more coal to feed its power plants.

Indonesian Firm to Build $1-Billion Coal Port in Southern Vietnam

The booming of coal-fired power plants spurs coal demand in Vietnam. Photo: mbss.co.id

The agreement was signed in Jakarta on Wednesday in the presence of Indonesian President Joko Widodo and Secretary General of the Communist Party of Vietnam Nguyen Phu Trong, who is on a visit to that country on August 22-24.
“The port will especially be used for cargo and logistics that will serve exports and imports between Indonesia and Vietnam, particularly coal,” Intra Asia Indonesia Commissioner Lutfi Ismail said in a statement.
Once in place, the port will have a capacity of handling between 15 million and 20 million tons of coal per year, he said, adding that it would cut logistics cost for coal imports from Indonesia.
The commissioner said construction of the port would facilitate the sustainability of coal exports from Indonesia to Vietnam, and would help fuel power plants in the neighboring country that is in dire need for power.
Indonesia targets to export 4.5 million tons of coal to Vietnam this year, said Lutfi. “We hope that the cooperation will boost Indonesian coal exports to Vietnam,” he added.
State-run Electricity of Vietnam (EVN) only is expected to import nearly 5 million tons of coal this year, and the volume is poised to reach 11 million tons by 2020 and 19 million tons by 2025, about one third of the country’s total coal import.
According to the General Department of Vietnam Customs, the country spent $801 million to import 7.93 million tons of coal in the first seven months of this year, down 5.1% in volume but up 49.2% in value from a year earlier.
The Central Statistics Agency reported that trade between Indonesia and Vietnam reached $6.3 billion last year, while Indonesia suffered a $182.90 million deficit. Leaders of the two countries have agreed to lift bilateral trade to $8 billion next year and $10 billion in the near future.

TUAN MINH

Từ khóa: Nguyen Phu Trong, EVN