South African coal industry mulling inland-terminal plan
Richards Bay Coal Terminal (RBCT) CEO Nosipho Siwisa-Damasane reported last week that the domestic industry was considering an inland coal terminal the size of RBCT as part of a broader strategy to raise the competitiveness of the domestic coal-logistics system.
Speaking during a panel discussion at a conference organised by the Industrial Development Corporation, Siwisa-Damasane said the discussions were being facilitated by the Chamber of Mines and included all the role-players in the embattled sector.
Domestic coal exporters, in particular, were facing a difficult environment, with the price of export coal having fallen to around $51/t, from over $120/t in 2010.
The discussions reportedly took account of Eskom’s coal needs, but were focused primarily on ensuring the long-term competitiveness of South Africa as a coal exporter.
“The biggest drive for coal expor- ters is the creation of an inland coal terminal the size of RBCT,” Siwisa-Damasane revealed.
The privately owned RBCT has a yearly nameplate capacity of 91-million tons, which is currently not being fully utilised. RBCT has a ramp-up plan with Transnet Freight Rail (TFR) for 74-million tons this year, followed by 77-million tons and then 81-million tons over five years.
Talks on the inland terminal have also intensified, since TFR introduced its 200-wagon Shongololo trains, as many junior miners did not have the siding infrastructure required to accommodate that length of train.
“If we look at the supply chain from an inland perspective, we have an opportunity to maximise the way we invest in [coal] infrastructure to remain competitive,” Siwisa-Damasane asserted.
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