KZN ports show drop in bulk exports in January

THE Kwazulu-natal (KZN) ports of Durban and Richards Bay had a disappointing start to 2019 with a

15.8 percent year-on-year drop in January in bulk exports at Richards

Bay, while full containers imported at Durban slipped by 4.7 percent y/y and full containers exported fell by

18.5 percent y/y.

This followed a productive 2018 despite the occasional hiccup caused by cable theft resulting in derailments.

Bulk exports out of Richards Bay grew by 19.5 percent y/y in the first quarter 2018 to 26 million tons (Mt), but growth then slowed for the balance of the year. This put into serious question the early 2018 expectation that the improvement in operations by Transnet Freight Rail since the annual maintenance in July 2017 on the railway line to the Mpumalanga coal fields should see the annual total move above 90Mt in 2018; but as it was, double-digit growth in some months allowed the target to be surpassed with a 4.5 percent rise for the year to 92.8Mt.

Richards Bay Coal Terminal (RBCT) chief executive Alan Waller told the 14th Annual Southern African Coal Conference this month it achieved an annualised throughput of 95Mt in December 2018 when they loaded 105 vessels. RBCT coal exports had fallen to 73.47Mt in 2018 from a record high of 76.47Mt in 2017. This was due to lower exports to South Korea. Asia took the bulk of the coal exports, with a share of 82 percent of all exports in 2018, while Europe took 10 percent and the rest of Africa 8 percent.

RBCT aims to export at least 77Mt this year. The rail line to RBCT has a current capacity of 81Mt, while the port has a capacity of 91Mt. The December 2018 throughput shows that the 2019 target should be achieved.

Overall bulk exports in 2018, however, were not that fortunate as multiple derailments on the Sishensaldanha iron ore line meant that bulk exports out Saldanha slumped by 10.5 percent to 57.4Mt.

Despite lower maize production in 2018, bulk exports out of all the other ports held up relatively well and there was only a 3.5 percent drop to 17.7Mt.