Oldendorff Carriers Inks Pact to Deliver Coal in Bangladesh

Oldendorff Carriers Inks Pact to Deliver Coal in Bangladesh

Bangladesh’s rapid economic growth has increased the demand for electricity. But the country’s power generation plants have been unable to meet customer demand over the past decade.

Bangladesh has a population of about 165 million, and in the rural areas, 13 million households still lack access to electricity. For this purpose, The Bangladesh Chinese Power Company Limited (BCPCL), a joint venture between North West Power Generation Company Limited (NWPGCL) and China National Machinery Import and Export Corporation (CMC), has constructed a 2 x 660 megawatt thermal power plant in Payra district of southern Bangladesh.

Last November, Oldendorff Carriers, a Germany-based dry bulk shipping company, reported to have signed a 5-year coal transportation agreement with the Bangladesh Chinese Power Company limited (BCPCL), to transport 20-25 million tonnes of coal to the country’s new power station at Payra port.

Oldendorff provides a full transportation solution to BCPCL, which includes coal transportation from Indonesia or Australia with transshipment in Andaman and Nicobar to Payra power plant in Bangladesh.

Oldendorff distinctly underlines the cost advantages of transshipping

The coal transshipment allows the Bangladeshi consignee company (BCPCL) to take advantage of lower freight costs by using large Capesize vessels (180,000 tdw) to Andaman and Nicobar, while smaller vessels deliver the cargo to BCPCL, due to draft restrictions at Payra port.

(tdw – Tons deadweight)

Weather restrictions for transshipment in the Gulf of Bengal, due to northeast and southwest monsoons, make transshipment impossible for at least four months of the year.

Oldendorff’s contract with BCPCL is split into two phases based on the power plant supply requirements. Initially, there will be direct shipments from Indonesia to Payra Port requiring up to 10 Supramax (50,000 tdw) shipments per month. During the second phase, Oldendorff will perform ocean freight on larger Capesize vessels and transship the cargo onto Supramax vessels in the Andaman and Nicobar Islands. The Supramax vessels will then deliver the cargo to Payra port.


Bangladesh Coal

In January 2018, Oldendorff successfully performed a trial transshipment operation in the Andaman and Nicobar Islands with the vessel Trina Oldendorff (74,600 tdw built 2013); the final destination of the cargo was Haldia in the Indian state of West Bengal.

The company further stated that its vessel Albert Oldendorff (93,272 tdw built 2010) is being converted to be the transshipment vessel in the Andaman Islands for this project. The vessel will be fitted with 3 x 36 MT side mounted cranes, two hoppers, two inclining cross conveyors and two telescopic booms. It is designed to transship cargo from one ship to another at 1,500 MT per hour.

Overall, the expected quantity of coal to be shipped ranges from 3.8 to 4.5 million tonnes per year, for a period of 5 years, as per a press release published by Oldendorff Carriers in November 2019.

Bangladesh’s Coal-fired Power Capacity Additions To Fuel Seaborne Thermal Coal Demand

Seaborne thermal coal demand is poised to grow in South Asia, as a consequence of the remarkable rise in coal imports in Bangladesh, thus generating opportunities for overseas coal suppliers as well as ocean freight shipping service providers.

To know more, participate in the Bangladesh Coal Conference 2020.