COAL EXPORTS EXPECTED TO RISE IN 2009
Posted on 02 April 2009 by Railways Africa Editor
South Africa has an expanding coal-export terminal, but an uncertain rail capacity, says Engineering News online. “The mismatch is something South Africa cannot afford, given its current-account deficit and the need to export optimally. Last year, South Africa’s coal exports were way below port capacity, reflecting a lost export opportunity. While coal exports are expected to rise this year, if an increase eventuates, rail will determine its extent. Problematic is Transnet Freight Rail’s (TFR’s) demand for long-term commitment from coal companies and on the horizon are possible public–private partnerships (PPPs) between coal-miners and TFR, just as Eskom is rolling out PPPs to ensure adequate power going into the future. Owing to the current capacity-build programme being rolled out by Eskom, and the increased demand for coal from previously neglected markets, such as Asia, the South African coal industry is set to grow into one of the country’s most vibrant mining sectors. Although exports to Europe have decreased, the demand from Asia will keep coal exports buoyant. The RBCT and coal-mining companies indicate that they are well positioned to take advantage of this situation. However, rail efficiencies from TFR will largely dictate whether South African coal exports will increase and by how much.”
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