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Another controversy over coal shipment: Why from Russian port?
In the aftermath of allegations of a fraud involving about Rs. 1.5 billion in the purchase of coal from Australia, the awarding of a three-year contract to a Singapore-based shipping company has created another controversy. According to officials, the contract has been awarded to the company for transportation of coal after adjusting tender requirements – a move which could result in additional expenses.
Ten shipments of coal have already been transported by the Singapore company even before the tender was awarded. Attempts to reach the Singapore company, PCL (shipping) Pte Ltd, were not successful. Emails and telephone calls went unanswered. Initially, tenders were called for the transportation of coal from Indonesia to the Norochcholai plant. After the tenders were opened an amendment was introduced to include a port of origin in Russia.
As a result the freight cost would increase as it requires more than three weeks to transport coal from Russia while it would take only a week to be brought from Indonesia. The price quoted for the import of coal from Indonesia was US$ 75 million or Rs. 9,000 million for 45 million metric tonnes. The cost of the import of coal from Russia was not immediately available.
However, a senior official of the state-owned Lanka Coal (Pvt) Ltd – the consignee — said the move would force the company to pay the additional freight cost.
He said this additional cost would have to be recovered from the Ceylon Electricity Board (CEB). This tender for the transportation of coal had been called by the Ceylon Shipping Corporation, but CSC Chairman Jayanath Colombage said it was a Cabinet decision.
The bidders had objected to the decision to include Russia as they were not able to quote accordingly. “We were not informed in advance that quotes should be included for coal to be transported from Russia,” one bidder said.