Malaysia: Tenaga to revive long-term coal shipping contracts after 10-year break, say sources in International Shipping News 21/04/2026 BULK carrier operators in the shipping industry are gearing up for Tenaga Nasional Bhd’s upcoming long-term contracts to transport coal into the country to fuel the nation’s coal power plants. The utility firm’s fuel sourcing arm TNB Fuel Services Sdn Bhd (TNBF) is looking to sign as many as 10 contracts of affreightment (COAs) to import the fuel source for the next 15 years, according to sources. A tender exercise is expected to be opened up in the second half of this year, estimated to be worth around RM4 billion, says one of the sources. At press time, Tenaga has not responded to requests for comment by The Edge. Unlike service vessels that use time charter or fixed daily charter rates, bulk carriers enter COAs that are volume-based. In 2025, TNBF imported 36.39 million tonnes of coal from countries such as Indonesia (65%) and Australia (22%), utilising the services of an estimated 40 ships for the delivery. Coal is transported in bulk carriers. Malaysian players with the presence or experience in dealing with this type of vessel include Maybulk Bhd (KL:MAYBULK), Pos Malaysia Bhd’s (KL:POS) indirect wholly-owned unit PNSL Bhd, Dinastia Jati Sdn Bhd, Duta Marine Sdn Bhd, Prima Shipping Sdn Bhd, Lestari Maritime Sdn Bhd and Jarsin Shipping Sdn Bhd. The last time Tenaga dished out such long-term shipping contracts was a decade ago, in 2016, when TNBF signed five Malaysian long-term COAs valued at a total of US$537 million to ship 7.5 million tonnes per annum (mtpa) of coal from Indonesia, with new vessels getting 15-year contracts and second-hand vessels getting 10-year deals. Winners included PNSL, Prima Shipping, Duta Marine and Maybulk. In June 2025, Benalec Holdings Bhd (KL:BENALEC) secured a two-year contract to ship up to 3.5 mtpa of coal for Tenaga. The upcoming tender could help winners secure financing for the construction of up to 10 new vessels, specifically the Panamax (below 80,000 deadweight tonnage [DWT]) or Kamsarmax (about 82,000 DWT) classes, each of which could cost north of US$40 million (RM161 million) to build, say the sources. “The idea is to issue long-term contracts for new vessels to support the local shipping sector. The vessels will take about two years to build, and TNBF issues shorter term contracts in the meantime to ensure supply security,” says one of them. The requirement for a new fleet of Malaysia-flagged vessels comes at a time when dry bulk shipping costs are at risk of increasing, led by surging energy prices due to the war in Iran that has sparked a crisis in the Middle East. Malaysia relies more on foreign ships than local-flag vessels to transport its goods, leading to a net outflow that may increase as costs rise. This reliance on foreign vessels is currently the single largest contributor to the ringgit’s outflow in the services account, as it results in huge deficits. In 2024 alone, Malaysia’s maritime freight imports — hiring a foreign-owned ship to carry goods — came in at RM31.86 billion, the largest component in the services account at over 12%, while freight exports contributed only RM9.8 billion, according to data from the Department of Statistics Malaysia. The Malaysia Shipowners’ Association, in a statement just last week, called on the government for support — such as access to financing and incentives for cargo shippers to use Malaysia-flagged vesse