Arch Coal increases share in DTA
Published by Angharad Lock,
Digital Assistant Editor
Dry Bulk,
Arch Coal Inc. has announced that it has expanded its equity share in Dominion Terminal Associates (DTA), a coal export terminal in Newport News, Virginia. The transaction will increase Arch's percentage interest in the storage-to-vessel coal transloading facility from 22% to 35% and augment its throughput capacity from 4.8 million t to 7.7 million t. The terminal has an estimated 22 million t annual throughput capacity.
"This transaction represents a strategic investment in export infrastructure that will further enhance Arch's leadership position as a supplier of high-quality metallurgical coal to the global steel industry," said Paul A. Lang, Arch's President and COO. "DTA is a world-class export facility and a key link in our seaborne marketing and logistics chain, providing us with significant and cost-effective access to our extensive global customer base. We expect US metallurgical coals to remain a cornerstone of international coke blends well into the future, and see significant seaborne market opportunities for US thermal coals as well."
Arch purchased the additional capacity for approximately US$7.2 million through an auction process held by existing owner Peabody Energy. Existing, third-party transloading agreements will be transferred to DTA upon closing of the transaction. These agreements should ensure a strong, ongoing revenue stream independent of partner throughput volume.
Arch participated in the bidding process alongside Contura Energy, a current partner in the DTA facility. The final sale is subject to court approval, and a hearing to approve the results of the auction is scheduled for 9 March.
Arch currently sells more than half of its broad slate of high-quality metallurgical coal to steel customers located in Europe, South America and Asia.
Read the article online at: https://www.drybulkmagazine.com/ports-terminals/08032017/arch-coal-increases-share-in-dta/
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