UAE's C&O plans big for coal logistics

To cater to energy needs of India, UAE-based $400 million integrated energy solutions major Coal & Oil company (C&O) has drawn up plans for the country to streamline coal logistics.

C&O group is the leading supplier of imported coal to larger industrial consumers in India. C&O's share accounts for 30 per cent of India's total coal imports and has a market share of 500 million tonne globally.

As a part of boosting coal logistics chain, this company had carries out India-centric operations, and is planning to acquire four bulk carriers to import coal.

"We have acquired a bulk carrier, the 71,000 dead weight tonne (DWT) geared Panamax vessel, to ensure smooth supply chain for coal. We are also planning to have a fleet of five Panamax carriers," C&O group president and CEO Ahmed A R Buhari said.

According to industry estimates, a second-hand Panamax geared ship is valued at $20 million to $30 million. The company is currently importing 6 million tonne of cargo and has plans to take it to 7 million tonne in this year.

"We are planning to handle 12 million tonne of cargo by 2009 and we need to invest for logistics infrastructure now. We are also looking out acquiring three to four coal mines in Indonesia and India. The size of coal mines will be at the size of $40 million," Ahmed said.

Meanwhile, the company is scouting for Indian stevedoring companies to handle inland logistics and supply.

"We are seriously looking at acquiring medium-sized stevedoring company to supplement our coal imports. If acquisition is not materialising, we will go for a greenfield stevedoring project which will have presence across the country,"

Ahmed said. This Dubai-based group is also exploring setting up small sized power plants in coastal states.

"The idea to set up power generation plants is currently in drawing board stage. It will be too premature to comment on it," he added.