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South Africa's Richards Bay Coal Terminal (RBCT), the largest coal-exporting terminal in the country and the world's fifth-largest coal exporter, saw its 2023 coal exports slump to a three-decade low caused by rail transportation constraints.
The terminal, with a coal handling capacity of 91 million tonnes per annum, shipped 47.2 million tonnes of coal last year, down 6.2% year on year, Reuters reported, citing Chief Executive Alan Waller.
The decline in coal exports could be attributed to ongoing difficulties with rail shipment at South Africa's state railways operator, Transnet SOC Ltd. The locomotive shortage, along with theft and vandalism on railway infrastructure, severely impacted coal shipments.
RBCT's coal exports to Europe plunged by 57% on the year to 6.1 million tonnes, reflecting lower demand. India emerged as the primary destination for coal exports from the RBCT, receiving about 19.7 million tonnes of coal last year.
However, Transnet fell short of its target of delivering 60 million tonnes of coal to the export terminal in 2023.
The terminal aims to export 50 million tonnes of the fossil fuel in 2024, indicating a cautious outlook for the year ahead.
The rail transportation situation faced further complications earlier this month when two trains collided, leading to disruptions in coal transportation.
Thungela Resources, a major coal miner, expressed limited impact on its operations despite the collision, Reuters reported earlier.
(Writing by Riley Liang Editing by Harry Huo)
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