Richards Bay Coal Terminal exports 'turn the corner' in 2024

The Richards Bay Coal Terminal has reported a more than 8% increase in exports volumes in 2024, thanks to improved railing performance as a coordinated approach to Transnet’s logistics crisis begins to bear fruit.The terminal, which is privately owned by South Africa’s largest coal producers, saw export volumes rise from 47 million tonnes in 2023 to 52 million tonnes in 2024.With railing performance showing a particularly good improvement toward the end of the year, the terminal is hopeful that it could reach beyond its target of 55 million tonnes in 2025, and possibly achieve close to 60 million tonnes."RBCT had a budget of 50 million tonnes in 2024, and we achieved 52.08 ... And the encouraging part is in the latter part of the year that number actually went up," the terminal’s CEO Alan Waller said at a briefing held in person in Richards Bay on Friday. "So this is roughly a 10% increase on 2023, and certainly we believe that we've turned that corner and we can only go up from here."Transnet’s deteriorated railing performance has had a major impact on bulk mineral exports like coal in recent years, with producers forced to truck volumes to alternative ports at a significantly higher cost. While encouraging, the numbers achieved by RBCT 2024 are still a far cry from the record 75.60 million tonnes exported in 2017, and much further away from the terminal’s design capacity of 91 million tonnes per annum – and the handling 32 trains per day – which was unlocked through an expansion project in 2018. Still, the design capacity has proved advantageous when Transnet has "cracker" days, Waller said. In 2024, the average number of trains was 17, but on one particularly good day, 30 trains were received.Due to continued work to maintain and progress efficiencies at the port, RBCT remains capable of handling such high volumes. This is despite financial constraints on the terminal resulting from the railing crisis and years of reduced volumes.A hiring freeze has resulted in over 51 unfilled vacancies, although performance and safety have not been compromised as a result, Waller said.In fact, 2024 was one of RBCT’s best years from a safety point of view, with nine injuries marking the lowest annual number ever recorded at the facility."We are navigating complex logistics challenges but we are trying to get back to where we were ... just to feel like we are going back there is very important," said RBCT chairperson Nosipho Damasane.Waller credited the improved volumes to Transnet’s latest leadership team and their targeted strategy around volume recovery."There's clear direction as to where we need to go, and not only that, I think their leadership has paved the way to allow for collaboration," he said, adding that such partnership with the private sector had previously not been well-received. A collaborative approach has begun to yield benefits, as evidenced in the procurement of certain spare parts to return Transnet locomotives to service. Maintenance shutdowns on the line have also benefitted from the support of the private sector. "The annual shut last year, a high percentage of the planned work was achieved in terms of removing speed restrictions, whereas previously we'd probably get to about a 75 to 80% execution rate if we were lucky."He further highlighted key initiatives, like the reinstatement of operational excellence centres. "We're getting back to the core of running trains, in my view, and I think that's been one of the big benefits," Waller said. Damasane said there were two key strategic interventions at play. One is the operational efficiency drive with intensified efforts to restore operational efficiency through the National Logistics Crisis Committee. "We are beginning to see stability coming through the process and we're enjoying that," she said. The second key area is the rail reform agenda, with the rail networks now open to third-party access. Damasane said RBCT was still navigating what this means for the corridor and how it can best participate.The Transnet Rail Infrastructure Manager’s recently published network statement has enabled third-party access but has not identified any opportunities on the economically critical coal line for now.Transnet said that as volumes recovered, slots for third parties would be identified and allocated.For volumes to improve, Waller said a critical focus is the reinstatement of the rail infrastructure. With an estimated R12.9 billion required to fix the coal line over a five-year period, it is not yet clear how this will be funded. "It is something we are really trying to button down," Waller said, noting that while the private sector has helped fund certain initiatives of late – this has been done on a recovery basis where the funds are clawed back through their rail rates due to Transnet."There are lots of discussions going on between Transnet and industry as to what is the mechanism that we can use going forward," he said. "We're not there yet, but there are a lot of discussions happening at the moment because I think there's a clear understanding from all parties that we've got to get the base infrastructure in place."In terms of rolling stock, the coal line remains hamstrung by an impasse with the China Railway Rolling Stock Corporation, which is refusing to supply Transnet with spare parts. Transnet is, however, hard at work to find innovative ways to bring some parked locomotives back into service and to bring other retrofitted locomotives onto the coal line. While cable theft and other crime continues to impact operations, Transnet CEO Michelle Phillips said greater emphasis will be placed on prevention."I'm actually not interested in how many criminals we catch because you’ll find that it's the runners and it's not necessarily the kingpins," she said. "Our work needs to be focused on having as few as possible people into the courtrooms because the truth of the matter is once the breach has happened, it's too late. We've lost as Transnet, the customer has lost and the country has lost."-FIN24

Richards Bay Coal Terminal exports 'turn the corner' in 2024

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Richards Bay Coal Terminal exports 'turn the corner' in 2024

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