Khulna, Feb 20 (BDNEWS) - Asia Energy Monday announced plans to build a US $40 million river terminal in or near the southern port of Khulna to handle shipment of up to eight million tonnes of coal from its Phulbari coal mine.
Gary Lye, Asia Energy's CEO Bangladesh, told a meeting in Khulna that the company was considering three options -- either to use the Mongla Port Authority site at the railhead in Khulna or possibly to build on a green field site on the River Rupsha to the north or south of the city.
"We are continuing with our process of public consultation and will further refine the social and environmental as well as economic studies before making a final decision, together with the appropriate authorities," Lye said.
He was speaking at a meeting attended by the Mayor of Khulna City Corporation, Sheikh Tayebur Rahman, local government and city officials, representatives of the Mongla Port Authority and reporters. He was accompanied by company's Executive Director Bill McIntosh and other senior managers.
Asia Energy's Phulbari coal mine at Dinajpur will produce 15 million tonnes of coal per annum, of which up to eight million tonnes will be exported -- initially by rail to Khulna and then by river barge to Akram Point from where it will be loaded onto seagoing ships.
Company officials said that major dredging will have to take place for deepwater ships to reach Akram Point and this in turn will enable larger vessels to operate in and out of Mongla port.
As a result, they said, shipping costs for all commodities will be more economic, opening Mongla and Khulna up as a competitive port for world-wide trade. This will act as a stimulus for business development in the area, they said.
In addition to Chittagong, Lye said, Asia Energy will also use Mongla and Khulna to import the diesel fuel and the giant trucks and diggers that it will be needed to work for its open pit mine at Phulbari.
"Our operations here will generate several thousand permanent new jobs," he said adding "Mongla-Khulna, in partnership with Bangladesh Railway, will become the hub of a prosperous new transport corridor in western Bangladesh."
Asia Energy has submitted a scheme of development and feasibility study for the Phulbari mine and is awaiting final government authorisation to start mining operations.
First coal is planned by 2008 with annual production increasingly rapidly to full capacity of 15 million tonnes by 2013.
BDNEWS/1426 hrs
