Transnet, South Africa's state-owned rail and ports company, announced its plans to introduce an additional 14 trains per week along its primary coal export corridor, effectively doubling its current capacity.
The firm aims to address the ongoing challenges faced by coal exporters in transporting their products to ports for international trade.
Transnet expects to implement this expansion between December and March of the coming year, providing much-needed relief to entities such as Thungela Resources, Exxaro Resources, Glencore, and Seriti, which have been grappling with the insufficient rail capacity hindering their coal shipments.
The immediate plan involves adding seven trains per week to the coal line by mid-December, raising the total from 21 to 28. Subsequently, another seven trains per week will be incorporated by March 2024, resulting in a total of 35 trains per week.
Transnet has been able to acquire additional locomotives due to ongoing repair work, thereby mitigating the shortage of these vital resources, as well as the scarcity of spare parts. The company has also taken measures to combat cable theft and protect infrastructure from vandalism, both of which have contributed to the challenges faced in bulk commodity transportation to ports.
These logistical hurdles have caused mineral exporters to suffer significant losses in potential export revenues. As a result, mining groups have resorted to utilizing trucks for coal shipment to the Richards Bay Coal Terminal (RBCT), from where shipments to Asian markets and beyond are facilitated.
Furthermore, addressing cable theft issues saw improvement and Transnet has commenced the reinstallation of signaling equipment throughout its network to enhance operational efficiency and reliability.
Exxaro, one of the major players in South Africa's coal sector, revealed that Transnet transported 39.43 million tonnes of coal to the RBCT between January and October, projecting an annual volume of 47.44 million tonnes.
While being the lowest recorded in three decades and slightly below 50.35 million tonnes last year, the additional trains and ongoing improvements are expected to alleviate the challenges faced by coal exporters and restore export levels.
(Writing by Riley Liang Editing by Harry Huo)
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