Transnet Freight Rail (TFR), engaged in moving coal from mines to the Richards Bay coal terminal, has closed export coal line from 11 Jul’17 to 17 Jul’17 for annual maintenance.
The planned shutdown is performed annually to achieve operational efficiency. The coal exports line runs from Ermelo to the Richards Bay Coal Terminal (RBCT).
Maintenance along the coal line will take place for 7 days during 11-17 Jul’17, instead of the usual 10 days because some of the maintenance work has already been completed. Earlier, TFR had planned RBCT line maintenance for 10 days over 11-20 Jul’17.
Prior to the Shutdown, TFR had also experienced interruptions due to community protests along the line last week. However, Officials from TFR had confirmed that the interruptions were sporadic in nature, and had not caused complete shutdown of Rail facility.
The interruptions had affected Rail service between Sunday and Wednesday night last week. Thereafter, the company had resumed its operations, and had been running smoothly since then.
The Rail network shutdown is synchronised with the coal mines, who also conduct their own maintenance at the same time. Moreover, in order to better align with India’s monsoon period, TFR had moved the annual maintenance schedule from May’17 to Jul’17, as buying activity from India is slowed down during the monsoon period.
South African Coal Prices:
South African index API-4 had surged to USD 84.35, however the index has fallen to USD 81.5 this week after the end of the protests.
However, owing to supply tightness in the coal market, offers for 5500 NAR coal were hovering in the range of USD 72/MT, FoB Richards Bay.
In India, buying activity was affected by the implementation of GST, as traders were finding it difficult to clear old stocks of coal.
Offers for 5500 NAR coal were heard at USD 83-84/MT, CFR India on Panamax vessel basis. While, 4800 NAR coal was offered at USD 68/MT, CFR India.
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