Disruptions in Rail Transport Cause Historic Drop in Richards Bay Coal Terminal Shipments
Shipments from South Africa’s primary coal export facility, Richards Bay Coal Terminal (RBCT), reached their lowest point in over three decades in 2023 due to disruptions in rail transportation affecting mines.
RBCT, owned by 13 coal mining companies, including Thungela, Exxaro Resources, Seriti Resources, and Glencore’s South African subsidiary, recorded a shipment of 47.2 million tons of coal last year, the lowest figure since at least 1992.
Despite RBCT’s annual export capacity of 91 million tonnes, operational challenges, such as a shortage of locomotives, derailments, and crime, have led to a sixth consecutive annual decline in volume.
State rail company Transnet SOC Ltd. aimed to deliver 60 million tons to the facility, but ongoing challenges hampered their efforts.
Transnet’s operational challenges persist, with trains colliding on the coal line just outside Richards Bay on January 14. RBCT has set a “budgeted rate” of 50 million tons for exports this year, aligning with the amount of coal transported to the facility by rail from the mines.
The increase in stockpiles may force smaller miners to consider halting production. In 2023, Europe imported 6.1 million tons of South African coal from RBCT, a 57% decline from the previous year due to reduced demand. India remained the primary destination for the fuel, receiving 19.7 million tons shipped from the facility.
SOURCE:africa.businessinsider.com
