Coal volumes transported by ESR up by 37%
MBABANE – In the financial year 2023/24, coal volumes transported by the Eswatini Railways (ESR) have increased by 37 per cent or 375 600 tons.
According to an annual report by the Ministry of Public :orks and Transport, during the aforementioned financial year, other commodities that showed significant growth include magnetite (27 per cent) and rock phosphate (28 per cent).
The ministry further reported that in the financial year 2023/24 traffic volumes were projected to reach 7.39 million tonnes which represent 96 per cent of budgeted traffic volumes for the year.
Of the total traffic, transit contributes 7.09 million tonnes or 96 per cent with imports and exports contributing 300 000 tonnes or 4 per cent. Compared to the previous year this represents a growth of 24 per cent or 1.45 million tonnes.
The growth in traffic can mainly be attributed to an additional coal client, Overlooked, who uses a similar model used by Grindrod to import coal from Mpumalanga in South Africa by trucks through the Ngwenya Border Post to be railed at Matsapha.
Adequate
It was reported that during the first half of the year, the major challenge was the shortage of adequate locomotives and wagons to capture all available traffic.
However, ESR has leased four additional locomotives from Grindrod and one from ARTS Surtees and purchased forty coal wagons from TFR which has seen an increase in traffic volumes moved.
Another occurrence worth mentioning was the fire that broke out at NTC in Richards Bay at the end of September 2023 which brought the railing of timber to a halt. However, through engagement with Montigny, the company has shown willingness to use another siding at Durban and this option is currently under consideration.
Other challenges that impacted train operations include congestion at Durban port following the breakdown of offloading equipment which is past its lifespan. For two weeks in November, there was no import train.
However, recent developments are that Transnet Port Terminals (TPT) has concluded a seven-year agreement with four Original Equipment Manufacturers (OEMs) for the supply of critical spares to alleviate equipment constraints at the country's ports.
Threat
Another imminent threat that ESR is faced with is the fall in global commodity prices, especially that of coal.
However, there are positives that ESR looks forward to including the country's participation in the African Continental Free Trade Area (AfCFTA) which is a significant step towards increased regional trade and economic integration.
On capital projects, it was reported that operations at the Mpaka Inland Clearing Depot (ICD) Project/facility commenced in September 2023, 565 185 tonnes of ethanol have been shipped from Mpaka ICD since opening to date. It was reported that the loading and shipping of sugar will resume once the sugar loading shed and warehouse, have been completed.
Extension
For the sugar loading shed extension and warehouse, revised drawings of the loading shed have been completed and will be issued for construction by the selected contractor once approved by the Tender Board. The work is expected to be completed in the first quarter of the financial year 2024/25.
There was not much activity during the period under review on the Matsapha ICD Phase II and III expansion feasibility study and architectural designs of port buildings. The major problem encountered is the lack of budget for the completion of the project.