Transportation Strategy in Optimization the Economic Value and Operational Reliability

PT Adaro MetCoal Companies (AMC) is one of the subsidiaries of PT Adaro Energy, Tbk, which in October 2016 was acquired 100% from BHP Billiton. AMC has assets consisting of seven Coal Contracts of Work (CCoW). BHP Billiton initially explored the Maruwai Coal Basin, in which the seven CCOWs are located and made a significant capital investment over a number of years for studying and defining the potential and coal quality of the area. AMC requires more than 73 km to transport coal from the Pit (mining location) to Stockpile by hauling trucks in the road and about 615 km from Stockpile to the Taboneo offshore port, transported by tug and barge through the river. AMC faces difficulties in their existing coal supply chain. There are three transportation options that required investment which can be carried out by Adaro Group as a logistics solution for AMC, namely Optimizing existing operations, direct barging (upper and lower cycles) and Transferring trough the river. The study was carried out by analyzing technical, operational, financial of the three options, with the same indicators to get the through-put cost per ton. The results of the study show that the third option provides sufficient investment returns and efficiency to AMC in their logistics costs.