[miningmx.com] – TRANSNET is considering examining the feasibility of
building its own dedicated coal terminal which could be operated by the transport
utility, GM of Transnet Commercial, Diveysh Kalan said on Friday.
Speaking at the Coaltrans conference in Johannesburg, Kalan said the idea of building
a terminal was being pursued in parallel to negotiations with Richards Bay Coal
Terminal (RBCT) and Grindrod, which manages a Richards Bay terminal and the
Matola terminal in Mozambique, regarding export allocations for black economic
empowerment (BEE) companies.
“It’s very high level at this stage,” said Kalan when pressed for further details on the
terminal plan. He added that one of two sites had been identified, which was
the old site for the South Dunes Coal Terminal. He could not say whether the
feasibility for the terminal was included in Transnet’s R300bn, seven-year Market
Demand Strategy unveiled in March.
The terminal idea is known among coal industry players. Known as the “ANC
Terminal”, it may be sited – if built – next to Navitrade, which is Grindrod’s Richards
Bay terminal. “They are serious about it and the state owns alot of the infrastructure
in the region, so logistically it could be done,” one coal industry source said on the
sidelines of the conference.
Currently, South Africa’s emergent coal exporters use port allocation through the
Quattro system which provides capacity of some 4 million tonnes/year, but is thought
to be only 3.5Mtpa utilised.
Transnet is hoping to build Quattro to as much as 10Mtpa, but is hoping RBCT
shareholders will relinquish some of their entitlement – an agreement that Kalan
conceded was providing hard to achieve.
“There has been engagement and there has been some progress,” said Kalan.
Earlier this week, Eskom CEO Brian Dames said his company had been approached
about releasing some 3Mtpa of export entitlement through RBCT to BEE coal
exporters, but was seeking value for it.
He suggested as one possible solution that BEE companies wanting to use Eskom’s
RBCT entitlement, which it owns from the now defunct Eskom Enterprises, should
provide an agreement whereby they promised domestic coal production to Eskom.
