Coal export volumes at Richards Bay Coal Terminal are worst in 30 years, says its CEO

Richards Bay Coal Terminal exported 50.35Mt compared with 58.72Mt in 2021. Photo: Simphiwe Mbokazi (ANA)

Richards Bay Coal Terminal exported 50.35Mt compared with 58.72Mt in 2021. Photo: Simphiwe Mbokazi (ANA)

Published Jan 27, 2023

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Richards Bay Coal Terminal (RBCT) said yesterday that last year's coal export volumes decreased to about 50 million tonnes, the lowest level in 30 years, due to cable theft, the Transnet strike and wagon derailments.

Speaking at a presser to unpack RBCT's performance, CEO Alan Waller said Transnet Freight Rail (TFR) managed to rail 50.43 million tons (Mt) of coal to the RBCT last year, which is down from 58.1Mt in 2021.

He said the terminal exported 50.35Mt compared with 58.72Mt in 2021.

RBCT had forecast 70Mt that TFR was supposed to rail in 2022 and the total throughput capacity of the RBCT, which has been 91Mt per year since 2010.

The terminal achieved its best performance in 2017 when it exported 76.5Mt of coal.

Waller said the biggest factor affecting the terminal's performance was the low volumes.

“And intrinsically linked to that is the ability to get the rail to the port. The terminal, which is owned by South Africa's largest coal producers, is not designed to take road trucks, and even if it were, the number of trucks required to compensate for undelivered rail volumes is pretty much unthinkable,” he said.

Waller said RBCT expected to export 60 million tonnes of coal in 2023 as it budgeted for an increasing export performance. He said that was aligned with the Transnet contractual commitments with exporters.

“If I look at the commitments from the parties, it is a possibility. It could be a stretch, but I think we could achieve 60 million tonnes (Mt)," he said.

According to Waller, 22 days of railing were lost during the Transnet strike, while derailments took their toll on the terminal. The strike and the derailment together had cost the RBCT some five million tonnes in lost railages and exports.

“Unfortunately, it was a regression through the year, largely impacted in the last quarter by the strike and derailments. Those hurt us a lot, as well as the continuation of the failure of some of the locomotives and the increased challenge posed to Transnet.”

Waller said a stockpile of above 4 Mt was considered optimal, but last year the terminal ran its stockpile at an average of between 2Mt and 3Mt because of the poor railage deliveries.

Waller said RBCT had a good relationship with Transnet. “Relationships are good, there are good commitments. Don't get me wrong, we've got our challenges, like any other business, and we butt heads. There is willingness and acceptance that we have to work together to turn this around.“

TFR coal line managing executive Ali Motala said TFR was on track to deliver budgeted volumes this year, despite the numerous challenges faced, as it works to implement various initiatives.

On cable theft, Waller said RBCT was predominantly hit at night: “I think we have 86 armed reaction units that patrol at night-time together with teams. The only technology that has really been used at this stage is drone technology.

In terms of monitoring, together with TFR they had tried to have additional people to improve response time.

“We've got people in control centres so that we can detect early and then we can respond appropriately,” he said.

To combat cable theft, TFR had been looking at some technology to use in the future.

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