TRANSNET said it was preparing for the annual maintenance shutdown on its coal line running from Mpumalanga to KwaZulu-Natal provinces this week which it hoped would release bottlenecks that have hampered volumes this year.
Coal freight has been poor with the country currently set to deliver about 56 million tons (Mt) of coal, below the 58.72Mt achieved last year, itself an underperformance. The lower freight rates were related to copper cable theft and the low availability of locomotives, according to Transnet.
The shutdown will allow for maintenance and repair work on the Richards Bay to Pyramid South (near Pretoria) section of the line. The Richards Bay to Ermelo section and the DC section between Ermelo and the mines will also be included in the maintenance which will be between July 12 and July 22.
“Plans are at an advanced stage for the successful execution of this mega project aimed at uplifting a total of 16 temporary speed restrictions equating to 34 kilometres of railway track,” said Transnet. “This project will see the restoration of eight slots in the network for the North Corridor,” it added.
“Amongst the benefits, will be to improve the deteriorated network conditions, to create resilient Infrastructure and accelerate the Network Renewal programme,” said Transnet managing executive for the North Corridor, Ali Motala.
Transnet declared a force majeure in April with coal exporters as a result of its inability to meet contracted coal offtake. The force majeure came at at a time of soaring prices for the fuel. Transnet subsequently agreed new contracts with a group of exporters.
According to a report by RMB Morgan Stanley, South Africa could lose about R15bn in tax take given the improvement of the thermal coal price offset by the declining rail volumes.
