South Africa's coal export line will need five years to refurbish
South Africa’s State-owned rail company needs $669-million and five years to upgrade equipment to revive performance of its main export coal line, according to an internal report.
Coal shipments plunged to a more than three-decade low of 48-million tons last year because of inefficiencies at Transnet, which blamed lack of locomotives and spare parts for its woes. The two other major factors limiting the amount of the fuel shipped to the coast for export are infrastructure faults and issues with signaling systems, according to a final executive summary report seen by Bloomberg.
The “conservative” export coal forecast for the financial year is 54-million tons, the company said in a response to questions, confirming the report. “All remedial actions are aimed at achieving a 78-million-ton tempo,” it said.
A “do-nothing” approach could result in volumes transported on the line that runs from inland mines to Richards Bay Coal Terminal, the largest facility of its kind on the continent, dropping to as low as 38-million tons for the current financial year, the document dated July 12 and co-authored by logistics companies Thelo Group and Deutsche Bahn showed.
Network faults that cause disruptions and manual authorizations resulting in delays result in greater losses than the unavailability of rolling stock, according to the report. Theft and vandalism of equipment and signals have also contributed to losses.
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