Thungela sees ‘limited impact from collision ’ of two Transnet trains

Thungela Resources does not expect a derailment on SA’s main coal export line to affect its operations significantly.

State-owned freight rail operator Transnet said on Tuesday that it was still working to clear the line to Richards Bay, the country’s major coal export port, after two trains collided on Sunday. It did not say what caused the accident or when services would be restored.

Transnet said no serious injuries were reported in the incident, but that the disruption of services to Richards Bay would throttle mineral shipments already constrained by locomotive shortages as well as rampant cable theft and vandalism of infrastructure.

“The collision is expected to have limited impact on our operations. We are in regular contact with Transnet and expect an update on when the services will be reinstated in due course,” Thungela said in an emailed response to Reuters.

Thungela’s share price was down 1.37% at R141.80 at the close. Glencore, another major coal exporter from SA, declined to comment on how the derailment was affecting haulage to port. Exxaro Resources did not respond immediately to queries.

Transnet has been struggling for years to haul commodities to the ports due to equipment shortages and maintenance backlogs after decades of underinvestment.

This state of affairs has forced companies such as Thungela and Africa’s biggest iron-ore exporter Kumba Iron Ore to reduce production due to limited capacity to transport commodities via rail to port. Some of the mining companies have been moving coal to port by road, which is more expensive and environmentally damaging than rail transport.

Transnet, which also operates the ports, announced curbs in November on trucks going into the Richards Bay port, citing “unprecedented congestion” on its roads.