ASIA

Coal port in to be constructed in Vietnam

9 years ago

A US$1bn coal port will be built in South Vietnam in a deal that could provide a major boost to the country’s cargo and logistics.

PT Intra Asia Indonesia has signed a memorandum of understanding (MoU) with its counterpart in Vietnam to construct the port, reported The Jakarta Post.

“The port will especially be used for cargo and logistics that will serve exports and imports between Indonesia and Vietnam, particularly coal,” said Intra Asia Indonesia commissioner Lutfi Ismail in a statement.

According to The Jakarta Post, Mr Ismail said the capacity of the port will reach between 15-20m tonnes of coal per year.

Cost reduction

He also reportedly said it would cut logistics cost for coal imports from Indonesia.

Construction of the port would facilitate the sustainability of coal exports from Indonesia to Vietnam, and would help fuel power plants in the country, according to Mr Ismail.

Indonesia aims to export 4.5m tonnes of coal to Vietnam this year, said Mr Ismail. “We hope that the cooperation will boost Indonesian coal exports to Vietnam,” he added.

Trade between Indonesia and Vietnam reached $6.3 billion last year, while Indonesia suffered a $182.90m deficit, according to the Central Statistics Agency (BPS).