Oldendorff signs coal transportation agreement with BCPCL
Published by Stephanie Roker,
Bangladesh's rapid economic growth has increased the demand for electricity. Overall, the country's generation plants have been unable to meet customer demand over the past decade. Bangladesh has a population of about 165 million, and in the rural areas, 13 million households still have no access to electricity. The Bangladesh Chinese Power Company limited (BCPCL), which is a 50/50 JV between North West Power Generation Company Limited (NWPGCL) and China National Machinery Import and Export Corporation (CMC), have constructed a two 660 MW coal-fired power plant in Payra (Bangladesh).
Oldendorff signed a coal transportation agreement (CTA) with BCPCL. Oldendorff will provide a full transportation solution to BCPCL, which includes coal transportation from Indonesia or Australia with transhipment in Andaman and Nicobar to the Payra power plant in Bangladesh. The coal transhipment will allow BCPCL to take advantage of lower freight costs using larger vessels to Andaman and Nicobar Islands, and smaller vessels will deliver the cargo to BCPCL, due to draft restrictions at Payra port. Weather restrictions for transhipment in the Gulf of Bengal, due to northeast and southwest monsoons, make transhipment impossible for at least four months of the year. The expected quantity of coal to be shipped will be between 3.8 - 4.5 million MTS/yr, for a period of 5 years.
The contract with BCPCL is split into two phases based on the power plant supply requirements. Initially, there will be direct shipments from Indonesia to Payra port requiring up to 10 supramax shipments per month. During the second phase, Oldendorff will perform ocean freight on larger vessels and tranship the cargo in the Andaman and Nicobar Islands. Transhipment will be done in a safe, cost-effective and environmentally-friendly manner to supramax vessels. The supramax vessels will deliver the cargo to Payra port.
Oldendorff performed a successful trial transhipment operation in the Andaman and Nicobar Islands in January 2018 with the Trina Oldendorff (74 600 DWT built 2013). In that case, the final destination of the cargo was Haldia, India.
As a result of the successful trial transhipment in the Andaman and Nicobar Islands, Oldendorff is confident that the cargo for BCPCL can also be successfully transhipped there.
Read the article online at: https://www.worldcoal.com/coal/06112019/oldendorff-signs-coal-transportation-agreement-with-bcpcl/
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