JAKARTA/SINGAPORE Feb 8 Road blockages and bad
weather in Kalimantan on the Indonesian side of Borneo island
are being blamed for a disruption of coal supplies from one of
the world's most important export regions.
Coal traders and ship operators cited several reasons for
the loading delays.
According to domestic online media suarakalimantan.com,
citing statements from local authorities, coal hauling roads
were closed by the South Kalimantan government in three
locations, leaving "thousands" unable to work.
"They don't have access to roads," Pandu Sjahrir, chairman
of the Indonesian Coal Mining Association told Reuters on
Wednesday, referring to stoppages by local authorities.
Local authorities and port operators were not available for
comment. A spokesman for Indonesia's transportation ministry,
which oversees ports was unable to comment.
Reuters reported the delays have affected coal ports near
Samarinda in the province of East Kalimantan and Taboneo, near
the capital of South Kalimantan, Banjarmasin.
"The area most affected is getting coal down the Barito
River to coastal ports like Taboneo," said one coal barge
shipper from Kalimantan, speaking on the condition of anonymity
due to the sensitivity of the matter.
Shipping data in Thomson Reuters Eikon and port loading
schedules seen by Reuters show over 130 ships are currently
offshore Kalimantan waiting to take on coal, some since late
The previous week, that figure stood at 108, the data
showed. Indonesia's Kalimantan provinces make up one of the
world's biggest thermal coal mining regions.
"Local authorities are delaying shipping and export
licenses, and that is what is causing delays," said a marine
logistics executive in Jakarta, also on the condition of
The executive, with operations in South Kalimantan, said the
long delays in the region "could start to see vessel
cancellations or movement of ships to other areas in Indonesia
to clear some of the many vessels waiting for cargo."
Shipping data in Eikon shows that around 30 large ships are
currently waiting to load coal at Taboneo, with several waiting
for about six weeks.
In East Kalimantan, there have been delays caused by bad
weather, preventing barges from transferring coal on to larger
ships for export.
"The delays across Kalimantan are widespread, for many
reasons. But they're big. Some of the ships have been waiting
for almost two months to take on coal," said one coal shipper
who frequently orders cargoes from Kalimantan.
A large number of miners export coal from Kalimantan,
including small local firms and large international
It was unclear which firms have been affected by the
disruptions, although Indonesian coal majors Bumi Resources
, Adaro Energy, and Bayan Resources
said they had so far not been impacted.
Overall, traders said the disruptions would likely impact
seaborne thermal coal prices, especially from Australia, at a
time when Chinese imports are increasing.
Indonesia is targeting the production of 470 million tonnes
of coal in 2017, the bulk of which will be exported to
"If there's disruptions in Indonesia, coal buyers will have
to turn to alternative sources to meet their demand, and that's
Australian coal," said one coal trader.
Australian prompt cargo prices for coal from its Newcastle
terminal, the Asian benchmark price, last settled
at $79.90 per tonne.
(Reporting by Fergus Jensen in JAKARTA and Henning Gloystein in
SINGAPORE; Additional reporting by Keith Wallis and Roslan
Khasawneh in SINGAPORE; Writing by Henning Gloystein; Editing by