Coal exports down amid rail issues
IT IS a push against time to return coal exports through Richards Bay Coal Terminal (RBCT) to their former glory as volumes continue a year-on-year decline, reaching a 30-year slump in 2023.
Train derailments, security threats, and locomotive availability on the part of Transnet Freight Rail (TFR) were among the factors hampering the coal terminal's performance last year.
RBCT’s performance results for 2023 showed a more than two million tonnage drop in coal export volumes compared with the previous year.
The terminal, which has a 91 million tonne capacity, recorded 47.21 million tonnes this past year – a level last recorded 30 years ago when 48.59 million tonnes were moved. In 2022, the coal exported was 50.35 million tonnes, while 58.72 million were recorded in 2021.
While there are major concerns about the declining volumes, RBCT CEO
Alan Waller told the media during a virtual briefing on Thursday that they are optimistic about the concerted efforts to improve operations and increase volumes.
This is amid a 2024 target of 50 million tonnes.
“Our target was 60 million tonnes and that was aligned to the Transnet Freight Rail contractual rate.
“I would, however, like to believe that what we saw in the last quarter of this year, and more particularly over the December period, that we are certainly at that stabilisation point and starting to move forward and grow,” said Waller.
He said a major challenge has been the security incidents on the critical export rail line.
"Every time you bring the line to a halt, it takes a couple of days to get it back into balance and get the system back into full operation,” he said.
The total number of trains off-loaded at the terminal was 5 820 with an average of 16 per day.
In terms of export destinations, 78.6% of the country's coal went to Asia, 13% to Europe, 2.8% to the Middle East and 5.6% to other African countries.
“With last year’s Ukraine war, there was quite a shift, with 14.3 million tonnes going to Europe, roughly 28% of the coal, and Asia was sitting at 62.9 million tonnes.
“We have seen a direct shift of that volume from Europe back to India, which has been more the traditional home of South African coal, with very little movement between Africa and the Middle East,” said Waller.