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Focused training for Coal, Electricity and
Shipping Executives and Traders
An intensive residential training course for new or
experienced coal executives
MONDAY 12 - FRIDAY 16 MAY 2003
Hartsfield Manor, Betchworth, Surrey, England
Led by a faculty of coal industry experts and practitioners, in five days you will:
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Learn how to negotiate coal supply agreements
Gain a sound working knowledge of coal
transportation and transhipment
Examine the contractual and physical risks of
trading coal, including electronic trading
See at first hand how a coal power station operates
Put theory in to practice through real-life case studies
Organised by
BACKGROUND
The international coal market is
changing and evolving rapidly.
Although a relatively small number
of multi-national coal companies
now dominate the supply side of
the market, there are at the same
time large increases in exports
from China which have had a big
influence on today's steam coal
market. Meanwhile, electronic
communications continue to alter
the ways in which coal supply
agreements and transport
contracts are being negotiated;
various electronic tenders and
e-platforms are being used both
for physical coal and for the
increasing trade in coal as a
commodity, with opportunities for
hedging risks and separating
physical contracts from pricing.
COURSE OBJECTIVES
This intensive, residential course, now in
its seventh year of operation, aims
to give participants an in-depth knowledge
of negotiating coal supply agreements
and arranging all the links in the
transportation chain from the mine to the
final consumer, including e-commerce.
DELEGATES WILL LEARN
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How to negotiate coal supply and
transport agreements and what needs
to be included
The logistics of each mode of coal
transport and transhipment
What type of vessel and shipping
contract is appropriate for different
circumstances
The role of traders, brokers and agents
in arranging deals and transport
How to build coal quality assurance
into the contract and logistics
The appropriate use of e-commerce for
all the above and its legal implications
How to trade coal as a commodity
and how to hedge the risks in the
physical trade
WHO SHOULD ATTEND?
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Anyone in a coal producing or
consuming company who requires a
wider or deeper understanding of coal
contracts and transport agreements
Anyone from a shipping or transport
company or terminal operator that
needs to know more about coal supply
agreements and logistics
Traders, shipbrokers, agents and
independent inspectors who want to
acquire more knowledge of the
coal business
Recent entrants to any aspect of coal
trade or transportation
Anyone from a commodities market,
financial institution, legal firm or
government organisation, who may be
concerned with coal use, production,
trade or transport
Coaltrans Conferences Ltd reserves the right to change or cancel any
part of its published programme due to unforeseen circumstances.
TEACHING FACULTY
The faculty is drawn from executives and
practitioners in companies actively
involved in coal trading and the different
parts of the coal supply chain, including
coking coal. The medium of instruction
will include lectures, examples drawn
from real situations, group exercises, a
visit to a power station and a detailed
course manual. There will be ample time
to question and probe each speaker and
the programme requires a high level of
commitment in terms of individual
learning and group contribution.
Hugh Lee, Course Director, UK
Hugh Lee is an independent consultant with over
thirty-five years experience in the world coal
industry. He has been a speaker and a lecturer at
many international coal and energy conferences
and courses. He led the International Energy
Agency’s investigations on worldwide coal supply
and transport. He was Deputy Head of Strategic
Planning for British Coal during its restructuring
and the privatisation of the UK electricity industry.
Most recently, he managed the international coal
and electricity consultancy work of WEFA
ENERGY. He has been the Director for all twelve
previous courses.
Peter Bennett, Partner, Holman,
Fenwick & Willan, UK
Peter Bennett joined Holman Fenwick & Willan in
1986 and became a partner in 1993. He
specialises in international commercial litigation
and arbitration. He acts for clients from the
international energy industry (covering utilities,
coal, oil, gas and power systems). He is a member
of the IBA Coal, Oil and Gas Committees. Peter
Bennett has given many seminars and regularly
makes presentations to clients.
David Clay, Director, Mowlem
Environmental Sciences Group &
Director, Alex Stewart, TES Bretby
(Joint Venture), UK
David Clay has over 30 years experience in coal
sampling, inspection and testing. He is an
internationally acknowledged technical expert in
these fields and is Chairman of the related
International Standards Organisation (ISO)
committees. David manages many large volume
sampling and testing contracts for internationally
traded coal and also travels world-wide
developing TES Bretby and the joint venture
business. In March 2002 he also became a
Director of Mowlem Environmental Sciences Group
having operational responsibility for all of their
testing businesses.
Nick Collins, Director, H. Clarkson, UK
Nick Collins is a Director of H. Clarkson and Co.
and their subsidiary Clarkson Research. Clarksons
is the largest ship broking and one of the largest
shipping services companies in the world. He
worked in Tokyo from the late 1970's to the early
1980's and from 1991 to 1995 was Managing
Director of Clarkson Asia in Singapore, where he
started the Dry Cargo presence and concentrated
on the emerging Indonesian Coal Market. Nick is
author of the recently published ’The Essential
Guide to Chartering and the Dry Freight Market‘.
Linda Doku, Marketing Manager,
BHP Billiton, The Netherlands
Linda Doku, currently based in the BHP Billiton
marketing office in The Hague, markets
Metallurgical Coal and Coke to the European
market on behalf of BHP Billiton Mitsubishi Alliance
(BMA). Working with BHP Billiton, the world's
leading supplier of high quality coking coal, has
provided Linda with some 8 years experience in
global marketing along with a good understanding
of coal quality and logistics management.
Norman Oerlemans, International
Port & Dry Bulk Consultant, Derlis
International, The Netherlands
Norman Oerlemans has some 20 years experience
in the dry bulk trade. He presently consults in the
field of international trade, transport and
transhipment operations of dry bulk goods. He has
previously been Director of EMO, the well-known
transhipment company in Rotterdam, Managing
Director of SNV ( A Dutch holding company of
several dry bulk transhipment companies),
Managing Director of European Waterways
Transhipment (EWT) BV, one of the largest inland
waterway transport companies in Europe and
Managing Director of an international trading
company in ores and minerals.
Gerry Riley, Corporate Engineer, Fuels
and Combustion, Innogy Plc, UK
Dr Gerry Riley is a Fuel and Combustion Specialist
working in Innogy's PLC Engineering Department.
He has 12 years experience working in the
electricity supply industry. He has a wide range of
experience of fuel related projects both within the
UK and abroad. He is on the executive committee
of the Coal Research Forum and is a member of
the DTI Coal Strategy Group.
Ian Shirreff, Chartering Manager,
Zodiac Maritime, UK
Ian Shirreff is the Chartering Manager of Zodiac
Maritime, London, which currently operates a total
of 33 capesize vessels in conjunction with
Associated Bulk Carriers. Ian was previously a
Director of P&O Bulk Carriers.
Richard Simon, Manager Special Projects, Fuel Services,
Southern Company Generation, USA
Rick Simon's responsibilities in Southern Company
Generation include fuel procurement, fuel business
development, synfuel project development and
administration, and special projects within Southern
Company’s Fuel Services Group. Prior to his current
position, he was General Manager and Corporate
Secretary of Allied Queensland Coalfields Pty Ltd,
and project fuel advisor and coal contract
negotiator for international power projects being
developed by Southern Energy, Inc (now Mirant).
Phil Smith, Vice President
International Sales, Drummond coal
Sales, Inc, UK
Phil Smith is Vice President International Sales for
Drummond Coal Sales, Inc. He has worked in the
international sales group at Drummond for 10
years from the company's headquarters in
Birmingham , Alabama, USA. Since September,
2001, he has been based in the London area with
responsibility for European sales. Prior to joining
Drummond in 1992, he worked in various
international marketing positions, with a focus on
mining industry customers, at Caterpillar, Inc.
Mark Walters, Vice President, Fuel and
Weather Trading, TXU-Europe, UK
Mark Walters has worked in the international coal
business since 1990, first with Shell Coal
International, then Phibro, and then as a founder
and director of Apex Minerals Ltd. He joined
Eastern Group (now TXU-Europe) in 1998, where
he is Vice President, Fuel & Weather Trading. He
has an MA from Oxford University and an MBA.
Tel: +44 (0) 20 7779 8945
Fax: +
AGENDA
DAY ONE
DAY FOUR
Monday May 12, 2003
Thursday May 15, 2003
Coal Trade in Context
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The evolution of today’s coal trade
Types of coal and their availability
Overview of international competition
Consolidation in coal supply
Why only physical trading in the past
Competition from gas and other fuels
Logistics overview
Independent power projects (IPPs)
Environmental aspects
Negotiating Coal Supply
Agreements - Producer and
Trader Perspectives
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Inquiries, tenders and offers
Taking a position
Standard terms & conditions
Contract structure
Point of sale (mine/port/plant)
Passing title and risk
INCOTERMS
Price and price basis
Payment and invoicing
Long term & frame contracts
Options
Metallurgical Coal Markets
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Introduction to coking coal
Coking coal/PCI coal/thermal coal
Quality of coking coal and coke
Cokemaking/ironmaking operations
Major coking coal suppliers
Long term and spot business
Negotiating coking coal contracts
Case Study: Procurement
Simulation evaluating coal
supply alternatives
DAY TWO
Tuesday May 13, 2003
Negotiating Coal Supply
Agreements - the Buyer’s
Perspective
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Company objective & fuel plan
Fuel sourcing
Market mechanics
Price escalators
Supplier capabilities
Length (spot/year/long term)
Quality premiums
Term extensions
Covering exchange rate risks
Documentation
Schedules & notification
Nominations & receipt
Case Study: Logistics &
Force Majeure
Port/Terminal Operations
Hartsfield Manor is set in 16 acres of Surrey
parklands. It provides excellent residential and
conference facilities and is well-situated to the southwest of London with easy access to both Heathrow
and Gatwick airports, and the M25.
Shipping Economics and the
Shipping Market
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Types and sizes of vessels
Other vessel characteristics
Vessel and voyage economics
Owners/Operators
Role of shipbrokers
The Charter Party
Contract of Affreightment & time charter
Communications about ETAs etc
Contract tonnages and permitted variations
Demurrage and other claims
Legal aspects and Insurance
Mechanism of chartering
Negotiating rates
Forward Freight Agreements
First Case Study continued
DAY THREE
Wednesday May 14, 2003
Coal Quality Management
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Building quality assurance into the contract
Role of independent inspector
Responsibilities
Instructions to inspectors
Sampling & Analysis
Draught surveys
Losses & measurement techniques
Risk areas
Visit to Didcot Power Station
A site visit to Innogy’s 4 x 500MW Didcot A
coal-fired power station which burns 5 Mt/a
on base-load. The presentation and tour of
all parts of the station will include
■ the train unloading and storage facilities for
imported and indigenous coal
■ the coal pulverising mills
■ the gas pipeline to the two units that have
been converted to dual-firing
■ how coal quality affects power station efficiency
■ how ash composition affects boiler tube
corrosion and life
■ a brief view of the Didcot B gas-fired
CCGT station
CASE STUDIES
During the course, the learning process will be reinforced by two “hands-on” advanced
case studies drawn from actual situations. The first involves competing teams in a coal
procurement simulation, which includes evaluating different supply options and long-term
strategies. The second requires teams to negotiate with each other to come up with
solutions to different contract, freight and force-majeure situations.
+44 (0)20 7779 8946
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Port management models
Role of port agents
Methods of loading/unloading
Offshore operations
Floating cranes
Self-unloading barges
Transhipment contracts
Unloading times
Handling costs
Stocking
Screening/washing/blending
Course Dinner
At a local restaurant in nearby village of Leigh
DAY FIVE
Friday May 16, 2003
Inland Transport
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Negotiating transport contracts
Factors that affect transport rates
Volume commitments
Loading and unloading times
Economics of each mode
Rail: monopolies and competition
Road: truck contracts
Barge systems in different countries
Conveyors and ropeways
Slurry pipelines
Legal Aspects of Coal Supply &
Transport Agreements
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Types of agreement
What is being sold/bought
Delivery
Force Majeure
Warranties & representations
Jurisdiction & choice of law
Agents & traders
Assignment
Disputes
Special contract requirements of IPPs
The contractual structure of electronic
and on-line trading
Trading Coal as a Commodity
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Requirements for a commodities market
Over the counter (OTC) trading
The emerging futures & options market
Prospects for screen trading
Electronic platforms
On-line auctions & reverse auctions
More market participants and liquidity
Standard contracts
Hedging and risk spreading
Delivery points
Quality premiums
Email: coaltrans@euromoneyplc.com
INTERNATIONAL COAL SUPPLY CONTRACTS AND TRANSPORT LOGISTICS TRAINING COURSE
5 EASY WAYS TO
REGISTER
Post: Coaltrans Conferences Ltd,
Nestor House, Playhouse Yard,
London EC4V 5EX, UK.
R
E
G
I
S
T
Telephone:
+44 (0)20 7779 8945
Email:
coaltrans@euromoneyplc.com
Fax:
+44 (0)20 7779 8946
Website:
www.coaltransconferences.com
R
A
T
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N
F
O
R
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INTERNATIONAL COAL SUPPLY CONTRACTS AND TRANSPORT LOGISTICS TRAINING COURSE
May 12-16, 2003 • Hartsfield Manor, Betchworth, Surrey, UK.
If you you wish to register more than one delegate, please photocopy this form for each person.
Date .........................................................................................................................................................................................................
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REGISTRATION FEE
Organisations registered for VAT in the UK may reclaim the tax. Delegates
from outside the UK but within the European Community may also be able to
reclaim the VAT. Organisations outside the UK and the EC should check with
their excise authority as to which domestic fiscal regulations apply.
The fee includes accommodation for the nights of May 12, 13, 14 and
15, all meals, tuition, training equipment and course materials. Any additional
nights can be arranged through Coaltrans (at delegate’s own expense).
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The registration fee is: £2795 + VAT @ 17.5% = £3284.13 per delegate.
Reduced registration fee for two or more delegates is
£2515.50 + VAT @ 17.5% = £2955.71 per delegate per delegate.
Payment to be made in one of three ways - please tick approproate box:
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2. Payment by BANK TRANSFER should be made through Lloyds
Bank plc, 72 Lombard Street, City Office, London EC3 3BT,
account number 1083711, sort code: 30-00-02 (all charges to
be paid by sender).
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3. CHEQUES should be drawn on a UK Bank and be made
payable to Coaltrans Conferences Ltd. A receipted invoice will be
sent to all delegates.
Cancellations
If delegates cannot attend, you must cancel your registration in writing
before April 11, 2003 to receive a refund, less a 10% administration
charge. We cannot accept verbal cancellations. Cancellations received
after April 11, 2003 are liable for the full conference fee. However,
substitutions can be sent to attend in your place at no extra charge. If
owing to a force majeure, Coaltrans is obliged to postpone or cancel the
event, Coaltrans is not liable for any travel or accommodation expenses
incurred by delegates or their organisations.
Please complete and return this form together with a copy of your credit
card number, bank transfer or cheque, payable in UK Sterling to Coaltrans
Conferences Ltd, and send by post or fax to: Coaltrans Conferences Ltd,
Nestor House, Playhouse Yard, London, EC4V 5EX, UK.
Tel: +44 (0) 20 7779 8945 Fax: +44 (0) 20 7779 8946
Email: coaltrans@euromoneyplc.com www.coaltransconferences.com
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