About the company

Tata Power has been a pioneer in the Power industry for the last 10 decades and had set the vision to grow by 10 times over 10 years.  In order to provide power at competitive prices and to ensure long term viability of power projects, value chain integration into coal mines and ocean transportation was essential. With this strategic intent to securitize fuel and fuel logistic services for growth, and to manage commodities of coal, fuel and shipping efficiently, Trust Energy Resources Pte Ltd (Trust Energy) was incorporated as a 100% wholly owned subsidiary of Tata Power on the 5th of February 2008.  Subsequently, representative offices were set up in Jakarta and South Africa. The Representative Offices are primarily engaged in identifying business development opportunities, developing and nurturing relationships with stakeholders.

Business Operations

The primary rationale for Trust Energy is to securitize coal supply and shipping of coal for Tata Power's Thermal Power generation operations. The main business activities of the company are ship owning / chartering and operating and Investments in coal resources and related technologies.

Trust Energy in its first phase manages a fleet of five cape size vessels. It has acquired two Cape size vessels of 181,000 DWT both built at STX Offshore & Shipbuilding Co., Ltd, Korea the fourth largest shipyard in the world. Further, the EEPL, the chartering arm, has entered into long term charters for another three cape vessels.

The shipping operations would be in full swing with synchronization of the Mundra project. In future, with growth of thermal coal requirements, Trust Energy will acquire and expand its fleet of ships

The company aims to build a sustainable, competitive advantage in the fuel supply chain and logistics business. In the short term, Trust Energy will be focused on the needs of Tata Power, but in the medium and long term it hopes to extend its services to players in the market.

Trust Energy's oversees Tata Power's investments are in the following ventures:

• OTP Geothermal Pte Ltd - A geothermal energy project in Indonesia
• PT Kalimatan Prima Power - A captive power plant for our coal mines in Indonesia

Team

The Singapore operations of the Tata Power office, has a small multi-racial team of 17 members with the required critical skills to handle strategic fuel sourcing & investment, fuel handling and logistics for Tata Power operations. The operations are headed by Mr. K. V. Rao with Mr. Minesh Dave, heading the International Coal Resources business and Mr. S.S. Varma, heading the Shipping Operations and together constitute the top leadership team. The team consists of senior professionals with experience in ship technical management, engineering, fleet operations, ship financing, chartering, shore and port operations. Other key capabilities include evaluation of Coal Mines, Coal Trading, Valuation and M&A, International business, legal, trade finance and risk management

Key achievements in 2011

• In May 2011, Trust Energy took the delivery of its two 181,000 DWT cape vessels built at the world class STX Shipyard at Korea. The construction of these two vessels was supervised and its technical design features managed through our internal teams.
• The Maritime Port Authority (MPA) of Singapore, the regulator granted the company a tax free status, under its Approved International Shipping Co scheme.