PTBA - Adding logistic railway capacity

PTBA is in partnership with KAI to build Kramasan coal unloading terminal in Kertapati to increase logistic supply. PTBA will act as coal supplier and KAI through its subsiary - KALOG provides unloading coal terminal and port. The terminal is built in 19,1 ha land with 60,000 ton per day capacity and modern infrastructure; integrated rail method with train unloading system bottom dump infrastructure and open side dump. (Source : Kontan) Comment : We view this synergy leads to increasing PTBA's logistic capacity as CFPP Sumsel-8 will COD 3Q23 which need additional railway mining services 20 mn ton per year on UPTE-Kramasan. Nevertheless, it will increase its COGS as railway mining positioned as second largest contributor, yet it is in line with growing production target. We also believe it should accelerate its coal monetization that serves wider mining life or 77 years due its abundant resources and reserves. The challenge es to softening prices that will impact to its export ASP, contributed 40% by total revenue.