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S.African Richards Bay exports to increase 10% by 2024 due to rail improvements

The Richards Bay Coal Terminal in South Africa (RBCT) is expected to export coal at a 10% increase in 2024. This will be the highest level in three years.

South Africa's coal exports have fallen from 76 millions tons in 2017. This is primarily due to Transnet, the state-owned rail freight and port operator, not having enough capacity to transport commodities to international markets.

In 2023, coal exports via RBCT (South Africa's main export terminal) fell to 47.21 millions tons, the lowest level since 1992.

Transnet's problems are attributed to a shortage of locomotives and parts, cable theft and vandalism against its infrastructure. Some minerals exporters have been forced to use trucks to transport their cargo to ports, and some commodities are now being transported through Mozambique.

Some major coal exporters such as Thungela Resources, Exxaro Resources and others have reported improved performance of the freight rail system in the second half 2024.

RBCT announced in a Friday performance update that 6,342 train cars were unloaded at the terminal by 2024. This is up from 5,820 in the previous year. In 2024, the average number of trains per day increased to 17, up from 16 in 2016.

By 2024, Asia will account for 43.99 million tons of South Africa coal exports, which is 84.5% more than the 37.1 million tons exported the year before. India exported 25.75 millions tons, and Pakistan imported 2.37.

After falling to 6.8 millions tons in 2023, the European Union's ban on Russian coal arose in response to the invasion of Ukraine. Shipments to Europe increased to 14.3 tons in 2022. Reporting by Nelson Banya Editing done by Mark Potter

(source: Reuters)