COAL LINE UPGRADE BEHIND

Posted on 03 July 2009 by Railways Africa Editor

Phase 5 expansion work on the Richards Bay Coal Terminal, which had a revised completion date by July 2009, has fallen behind schedule again and is not expected to be finished before the fourth quarter. Even then, double-shift working might be necessary. This was indicated on 15 June by chief operations officer Raymond Chirwa. He was quoted saying: “The latest postponement is due the interface of control systems. We need to make sure that technically the systems are done correctly.” 

Originally the phase 5 project was to have been completed in April 2009, increasing the terminal’s capacity from 72 million tons a year to 91 and catering for emerging black economic empowerment coal exporters who have been unable to access the existing export system.   According to Chirwa, the terminal ships more than a quarter of Europe’s energy coal: “After the completion of Phase 5, we will become the largest single terminal in the world. A terminal in Australia has capacity of 86 million tons”   Coal exported through Richards Bay has declined in volume since 2005, when a record 69.2 million tons was achieved, equivalent to 96% of capacity. In 2008, exports totaled 61.8 million tons, compared with 66.16 in 2007.  Earlier in 2009 it was revealed that almost 7% less coal had been shipped than in the previous year because of derailments, lower mining output due to weather and the diversion of large volumes of South African coal to Eskom to replenish its stockpiles.   A Reuters report quoted Transnet chief executive Chris Wells saying the phase 5 delay would have minimal impact on the movement of export coal to the port as coal producers are transporting lower volumes due to the economic slowdown. Transnet Freight Rail is able to move 70 million tons, he told a press conference, “but the key problem right now has been the lack of volume available.”