South Africa-Transnet Freight Rail (TFR), the rail services responsible for delivering coal from the mines to the Port of Richards Bay Coal Terminal (RBCT), has registered 2.4% increase in total coal supplies recorded in CY17.
According to the annual results released on Transnet’s website, the company had supplied 73.8 MnT coal through its freight rail service, TFR, in CY17. The export volume was 2.4% higher on the year compared with 72.1 MnT in 2016.
However, TFR had failed to achieve its annual target of 75.8 MnT, citing the low commodity prices and reduced demand from customers. The company had also highlighted the concerns regarding service execution challenges, locomotive issues, mines breakdowns, stockpile challenges and community unrest that had negatively affected the coal business during the year.
TFR is anticipating the future volume to be supported by 74.0 MnTPA take or pay coal contracts and an additional 7.8 MnTPA contract relating to Exxaro coal. Earlier in Oct’17, Transnet had signed a 10-year contract with Domestic miner Exxaro Resources for the transportation of coal from Exaaro’s mines to the Richards Bay Coal Terminal.
TFR is in line to increase coal transportation to 81 MnTPA in the near future, and thereafter to 97.5 MnTPA in the medium to long term. However, the company expects the appropriate timing of investment would be determined by the outcome of the coal demand.
According to the data maintained by CoalMint Research, RBCT had exported a total Non-Coking coal shipment of 77.90 MnT during Jan’17-Dec’17 period.
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