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BADAN PENGKAJIAN DAN PENERAPAN TEKNOLOGI (BPPT)/ PUSPIPTEK ENERGY RESEARCH LABORATORY/ in Association with BECHTEL NATIONAL, INC

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BADAN PENGKAJIAN DAN PENERAPAN TEKNOLOGI (BPPT)/ PUSPIPTEK ENERGY RESEARCH LABORATORY/ in Association with BECHTEL NATIONAL, INC Prepared by BADAN PENGKAJIAN DAN PENERAPAN TEKNOLOGI (BPPT)/ PUSPIPTEK ENERGY RESEARCH LABORATORY/ in Association with BECHTEL NATIONAL, INC. Sponsored by U.S. AGENCY for INTERNATIONAL DEVELOPMENT Contract #DAN 5724-C-00-1085-00 '' July 1985 FOREWORD This report on domestic land and sea transport requirements for Kalimantan coal is the third in a series of energy-related studies conducted by Badan Pengkajian dan Penerapan Teknologi (BPPT). The first study was published in December 1980 and analyzed alternative energy supply strategies for all of Indonesia. Because of the importance of the coal sector, BPPT published a second study (in June 1982), which provided a comprehensive assessment of all requirements associated with further development of the coal industry. In this study, the transportation of Kalimantan coal was recognized as one of the key problems facing the industry and was subsequently chosen as the focus of the present study. BPPT's intent with this report is to furnish a systems analysis of specific technical problems in developing an efficient coal transportation system that links future mine sites in Kalimantan with all potential uses on Java and other locations. The actual development of the system is the responsibility of various ministries and state companies. In conducting this study, BPPT views its role as one of assisting those ministries and companies in addressing technical and technology-oriented issues. It is believed that a coordinated approach to resolve such issues may emerge as a result. Similar to BPPT's previous energy studies, a key reason for this study is BPPT's desire to assist in the development of domestic industries that will support future expansion of the energy sector. Plans for these industries first and foremost depend on an evaluation of manpower, technologies, equipment, materials, and other resource requirements associated with plans for increasing energy supplies. Increased development and production of coal resources will require, for example, mining and material handling equipment, coal preparation plants, transport equipment, and a host of other support elements. This study is RR:6690a a needed addition to the process of improving and expanding the rolling stock, shipping, shipbuilding, and other industries that supply services and equipment for coal transport. As a matter of policy, BPPT has intentionally disseminated the results of this study widely in the expectation that a discussion of the study's results may lead to new ways of solving our country's problems. BPPT invites the reader to critically examine this report and greatly appreciates any constructive comments. Signed, Wardiman Djojonegoro RR:6690a CONTENTS Section Page 1 INTRODUCTION 1.1 Background i.i-i 1.1.1 Recent Energy Planning 1.1-I 1.1.2 Current Study 1.1-2 1.1.3 USAID Support and Funding 1.1-3 1.2 Development and Domestic Transport of Kalimantan Coal 1.2-1 1.3 Study Objectives 1.3-1 1.4 Project Organization 1.4-1 1.5 Acknowledgments 1.5-1 1.6 Organization of the Report 1.6-1 1.7 References 1.7-1 2 EXECUTIVE SUMMARY 2.1 Introduction 2.1-1 2.1.1 Study Basis 2.1-1 2.1.2 Conclusions 2.1-2 2.1.3 Action Plan 2.1-4 2.2 Development and Use of iKalimantan Coal 2.2-1 2.2.1 Resources and Limitations 2.2-1 2.2.2 Projected Production and Consumption 2.2-4 2.2.3 Market and Transport Development 2.2-4 2.3 Sea Transport 2.3-1 2.3.1 Conclusions 2.3-1 2.3.2 Recommendations Concerning Sea Transport 2.3-14 v RR: 8409a Section " ,14Page 2.4 Land Transport 2.4-1 2.4.1 Introduction 2.4-1 2.4.2 Conclusions 2.4-1 2.4.3 Recommendations Concerning Land Transport 2.4-8 2.5 Institutions: Conclusions and Recommendations 2.5-1 2.6 Action Plan 2.6-1 3 REVIEW OF COAL EXPLORATION AND DEVELOPMENT IN KALIMANTAN 3.1 Introduction 3.1-1 3.2 South Kalimantan Area 3.2-1 3.2.1 Exploration Overview 3.2-1 3.2.2 Quantity and Quality Estimates 3.2-4 3.2.3 Projected Coal Development 3.2-5 3.2.4 Infrastructure and Coal Transport 3.2-6 3.3 Pasir Area 3.3-1 3.3.1 Exploration Overview 3.3-1 3.3.2 Quantity and Quality Estimates 3.3-3 3.3.3 Projected Coal Development 3.3-4 3.3.4 Infrastructure and Coal Transport 3.3-5 3.4 Samarangau Area 3.4-1 3.4.1 Exploration Overview 3.4-1 3.4.2 Quantity and Quality Estimates 3.4-3 3.4.3 Projected Coal Development 3.4-4 3.4.4 Infrastructure and Ccal Transport 3.4-4 3.5 Mahakam Area 3.5-1 3.5.1 Exploration Overview 3.5-1 vi RR:8409a Section Page 3.5.2 Projected Coal Development 3.5-4 3.5.3 Infrastructure and Coal Transport 3.5-16 3.6 Sangatta Area 3.6-1 3.6.1 Exploration Overview 3.6-1 3.6.2 Infrastructure and Coal Transport 3.6-3 3.7 Berau Area 3.7-1 3.7.1 Exploration Overview 3.7-1 3.7.2 Infrastructure and Coal Transport 3.7-3 3.8 Tanjung Area 3.8-1 3.9 Future Coal Production Levels in Kalimantan 3.9-1 3.9.1 General 3.9-1 3.9.2 Quantity and Quality of Kalimantan Coal 3.9-2 Resources 3.9.3 Production Estimates 3.9-4 3.10 Conclusions 3.10-1 3.10.1 Exploration 3.10-1 3.10.2 Coal Resources and Future Production 3.10-1 3.10.3 Future Mines 3.10-2 3.10.4 Infrastructure 3.10-3 3.10.5 Transport of Coal Out of Kalimantan 3.10-3 3.11 References 3.11-1 POTENTIAL KALIMANTAN COAL USE 4.1 Introduction 4.1-1 4.2 Demand for Kalimantan Coal by Power and Cement Plants 4.2-1 4.2.1 Overview of the Market 4.2-1 4.2.2 Coal Demand Projections 4.2-7 vii RR: 8409a Section Page 4.3 Review of Coal Demand Projections 4.3-1 4.3.1 Uncertainties in Projections 4.3-1 4.3.2 Kalimantan Coal Projections Used in the Report 4.3-6 4.4 Conclusions 4.4-1 4.4.1 Market 4.4-I 4.4.2 Demand Projections 4.4-1 4.4.3 Uncertainty in Demand Projections 4.4-3 4.5 References 4.5-1 5 SEA TRANSPORT 5.1 Introduction 5.1-1 5.1.1 Coal Transport Analysis 5.1-1 5.1.2 Summary of Subsections 5.1-2 5.2 Sea Transport and Kalimantan Coal Development 5.2-1 5.2.1 Market Development 5.2-1 5.2.2 Hypothetical Case Study 5.2-5 5.2.3 Conclusions 5.2-10 5.3 Approach and Perspective for Sea Transport System 5.3-1 Analys is 5.3.1 Coal Supply Strategy 5.3-1 5.3.2 Analysis Premises 5.3-7 5.3.3 Analysis Approach 5.3-11 5,4 Analysis Methodology and General Shipping 5.4-1 Considerations 5.4.1 Methodology and Key Assumptions 5.4-1 5.4.2 Loading and Unloading 5.4-10 5.4.3 Harbors and Draft Restrictions 5.4-17 viii RR:8409a Section Page 5.4.4 Sample Cost Calculations 5.4-24 5.5 Formulation of Alternative Sea Transport Systems 5.5-1 5.5.1 Basic Approach 5.5-1 5.5.2 Option 1: Routes and Thoughputs 5.5-1 5.5.3 Selection of Transshipment Ports 5.5-8 5.5.4 Option 2: Routes and Throughputs 5.5-9 5.5.5 Vessel Selection for Options I and 2 5.5-11 5.5.6 Loading and Unloading 5.5-17 5.5.7 Fleet Composition and Vessel Requirements 5.5-17 5.6 Evaluation of Alternative Sea Transport Systems 5.6-1 5.6.1 Transport Costs for Options I and 2 5.6-2 5.6.2 Potential Cost Savings of Option 2 over 5.6-10 Option 1 5.6.3 Additional Benefits from Transshipment 5.6-18 5.7 Conclusions and Recommendations 5.7-1 5.7.1 Competitive Advantage of Kalimantan Coal 5.7-1 5.7.2 Phased System Development 5.7-1 5.7.3 Loading and Unloading Facilities 5.7-2 5.7.4 Draft Restrictions 5.7-3 5.7.5 Vessel Selection 5.7-4 5.7.6 Alternative Transport Systems 5.7-4 5.7.7 Cost of Direct Shipping 5.7-6 5.7.8 Transshipment 5.7-7 5.7.9 Economic Feasibility of Onshore Transshipment 5.7-7 Terminals 5.7.10 Establishing a Transshipment Terminal at 5.7-8 Balikpapan ix RR:8409a Section Page 5.7.11 Feasibility Study for Kalimantan Transshipment 5.7-9 Terminal 5.8 References 5.8-1 6 LAND TRANSPORT 6.1 Introduction 6.1-1 6.2 Land Transport Alternatives 6.2-1 6.2.1 Trucks and Conveyors 6.2-1 6.2.2 Rail and Slurry Pipeline 6.2-3 6.2.3 Aerial Tramways 6.2-8 6.2.4 Conclusion: Comparison of Land Transportation 6.2-9 Modes 6.3 Land Transport of Kalimantan Coal 6.3-1 6.3.1 Transport Requirements and Options 6.3-1 6.3.2 Samarangau Area 6.3-5 6.3.3 Vehicle Requirements for Kalimantan Coal 6.3-9 Transport 6.4 Land Transport on Java and Sulawesi 6.4-1 6.4.1 Transport Requirements and Options 6.4-1 6.4.2 Coal Transport in West Java 6.4-12 6.4.3 Coal Transport in South-central Java 6.4-28 6.4.4 Coal Transport in North-central Java 6.4-31 6.4.5 Coal Transport in East Java and on Sulawesi 6.4-35 6.4.6 Rail Car Requirements 6.4-35 6.5 Conclusions and Recommendations 6.5-1 6.5.1 Land Transport Requirements in Kalimantan 6.5-1 6.5.2 Characteristics Important to Land Transport 6.5-1 in Kalimantan x RR: 8409a Section Page 6.5.3 Likely Transport Modes in Kalimantan 6.5-1 6.5.4 Land Transport from the Samarangau Area 6.5-2 6.5.5 Vehicle Requirements for Kalimantan Coal 6.5-2 Transport 6.5.6 Land Transport Requirements on Java and 6.5-2 Sulawesi 6.5.7 Land Transport Options on Java and Sulawesi 6.5-3 6.5.8 Coal Transport to Cement Plants South of 6.5-5 Jakarta 6.5.9 Coal Transport to the Cement Plant at Palimanan 6.5-6 near Cirebon 6.5.10 Coal Transport in South-central Java 6.5-7 6.5.11 Coal Transport in North-central Java 6.5-7 6.5.12 Rail Car Requirements for Coal Transport on 6.5-7 Java 6.6 References 6.6-1 7 IMPLEMENTATION OF KALIMANTAN COAL TRANSPORT 7.1 Introduction 7.1-1 7.2 Shipping 7.2-1 7.2.1 Introduction 7.2-1 7.2.2 Current Situation in Shipping 7.2-2 7.2.3 Suitability of the Current Fleet for Coal 7.2-7 Transport 7.2.4 Conversion Feasibility of Log Carriers 7.2-13 7.2.5 Use of Log Carriers During Phase I 7.2-15 7.3 Shipbuilding and Repair 7.3-1 7.3.1 General 7.3-1 7.3.2 Ship Repair 7.3-3 xi RR: 8409a Section Page 7.3.3 Shipbuilding 7.3-3 7.3.4 Conclusions on Current Situation in 7.3-6 Shipbuilding and Repair 7.3.5 Impact of Kalimantan Coal Transport on 7.3-7 Shipbuilding
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