Richards Bay Coal Terminal (RBCT), one of the world's biggest coal-exporting hubs, has “turned the corner”, it said on Friday after reporting better rail and export volumes in 2024 — thanks to the reduction in logistical bottlenecks that have had a knock-on effect on the economy.
Speaking to journalists on Friday, CEO Alan Waller credited Transnet leaders including CEO Michelle Phillips, Transnet Freight Rail CEO Russell Baaitjies and group COO Solly Letsoalo for the improvement.
He said there was now a clear direction where the country needed to go for a better rail network. “Their leadership has paved the way to allow for collaboration. We had tried for a number of years as industry — and at one stage it was not well received,” he said.
“Opportunities were just not there, whereas the leadership in Transnet, in my mind, is open to collaboration, and to joint initiatives. The strategy they have around the recovery, and targets they’ve set, involves targeted approaches and initiatives in specific areas. We’re getting back to the core of running trains, in my view.”
RBCT chair Nosipho Damasane said there was a willingness to accept joint decision-making, and that transparency had helped improve performance. “The growth this year has not come on its own, there has been so much effort day to day, and strategically,” he said.
RBCT is owned by coal-exporting companies, including Thungela Resources, Glencore Operations SA, Exxaro and Seriti Power. It receives coal from 69 collieries via Transnet Freight Rail (TFR), and exports to markets such as India and Pakistan. It received 51.91-million tonnes of coal in 2024, representing an average of 17 trains a day, up from 47.92-million tonnes in 2023, the lowest level in 31 years when 16 trains a day arrived at the terminal. A total 50.3m tonnes were received a year earlier.
The terminal exported 52.08-million tonnes, beating its expectation of finishing the year at 50-million tonnes. It exported 47.1-million tonnes in 2023 and has budgeted a rate of 55-million tonnes in 2025 while Transnet Freight Rail's contract rate is 60-million tonnes.
The terminal is designed to receive 91-million tonnes and handle 32 trains a day, and export 91-million tonnes via 84 vessels a month. However, it received 38 trains in one day in 2017, its best performing year when 75.60-million tonnes was railed to the facility and 76.47-million tonnes was exported. This is because due to underinvestment, theft and vandalism and the unresolved rolling stock tender with the CRRC, a Chinese state-owned rolling stock manufacturer, Transnet has been underperforming.
Transnet unveiled a recovery plan under a new board in a bid to change its fortunes.
Under the plan, Transnet targeted 154.4-million tonnes for the 2023/24 financial year and fell short after reaching 151.7-million tonnes at the end of March 2024.
My personal view is that 55-million tonnes should be relatively easy to achieve, so the question is how far north of that can we get?
— Alan Waller, RBCT CEO
Waller said RBCT's 55-million tonnes target is achievable, given improvements in the December quarter. “We have turned the corner. At 52-million tonnes, where we have ended, there should only be upside,”he said
“We are fully aware there are going to be other initiatives coming out of the infrastructure assessment. My personal view is that 55-million tonnes should be relatively easy to achieve, so the question is: how far north of that can we get? From RBCT's point of view, 55-million tonnes can be achieved — so, can we get to 60-million,
Asia accounted for 84.5% (43.99-million tonnes) of RBCT's exports, including 25.75-million tonnes exported to India and 2.37-million tonnes to Pakistan. Europe accounted for 6.8% of exports, Africa 4.8% and the Middle East 3.9%.
TFR is struggling with a range of issues, including an impasse with the CRRC over spare parts for locomotives, low network reliability and cable theft.
Waller said the industry had stepped in to source similar components for compressors and batteries to those linked to the CRRC tender.
“We went out to the market with a technical specification that was provided by Transnet, and we were able to provide a comparable product that met technical specifications. We were able to better the lead times and, on that basis, we went out and procured, with the money recovered from Transnet for compressors and batteries.”
He said RBCT was trying to establish if there was an opportunity to look at a broader spare offering for Transnet.
“We don't have a solution for the CRRC impasse, however we still want to establish if there are other spares out there similar to the batteries and compressors that would be compatible. It’s an ongoing process between us and Transnet.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.