Surge of S.Africa’s Coal Export if Chinese Supply Recovers
South Africa’s state-owned rail operator, Transnet, could surge coal exports by resolving a dispute with Chinese supplier CRRC E-Loco. Transnet saw a record low of 50 million metric tons in shipments last year due to various issues. CEO Sizakele Mzimela suggests the resolution could boost coal exports to 81 million metric tons by 2026. The move could reactivate 159 idle locomotives within six months.
Thungela Resources and Exxaro Resources, major coal producers, currently face fuel stockpiling due to transport shortages. An agreement with CRRC could enhance Transnet’s capacity, aiming to transport 60 million metric tons this year, potentially reaching 74 million Mts by March 2024.
Transnet’s conflict with CRRC began with a cancelled locomotive contract. CRRC responded by withholding locomotives and parts, hindering Transnet’s ability to move commodities. The two companies have agreed to settle the dispute, but CRRC needs to finalize deals with South Africa’s central bank and tax authorities to resume operations. (read more…)
