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Seroja Investments wins new 4-year coal transportation contract

SINGAPORE-LISTED investment holding company Seroja Investments on Wednesday said that its subsidiary, PT Pulau Seroja Jaya, has secured a new four-year coal transportation contract with Indonesian energy group PT Maritim Barito Perkasa, an indirectly owned subsidiary of PT Adaro Energy Tbk.

The agreement, signed on Wednesday, will replace an old agreement inked on Nov 18, 2010, between PT Pulau Seroja Jaya and PT Adaro Indonesia. The old agreement, which would have expired in October 2017, has been terminated by mutual consent, Seroja Investments said.

The new agreement will expire on Aug 31, 2019, with an option for both parties to extend the agreement for another three years.

Under the new agreement, PT Pulau Seroja Jaya is expected to transport about seven million metric tons of coal a year for the next four years from the Adaro coal mines, which will generate an estimated cumulative revenue of US$48 million for the four-year period from 2016 to 2019.

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This is part of PT Pulau Seroja Jaya's strategy to establish a stable and reliable stream of business in its order books for the next few years, where "conditions are more volatile", said Seroja Investments.