Coal concerns
Dave Savides
BOTH coal export rail lines to the Richards Bay Coal Terminal were closed for two days after 42 of a 200- wagon train derailed on Thursday evening.
The incident took place at Camden-Overvaal and no injuries were reported.
It comes in the wake of national media criticism of Transnet Rail Freight's alleged inability to deliver the required quantities of coal to RBCT to meet export demand.
Export tonnages have been steadily decreasing from a record 69.2-million tons in 2005 to 66.2-million tons last year.
By contrast, capacity will rise to
91-million tons from 76-million tons this year once the new Phase V export terminal is completed.
And the matter has been further compounded by reports that more than a dozen emerging BEE mining companies - new shareholders in the R1.2-billion RBCT expansion project - will be last in the queue when export allocations are made.
Transnet responds
In an exclusive Q&A interview with the Zululand Observer, Transnet Rail Freight (TRF) Head of Communications, Sandile Simelane reacted to the allegations.
ZO: Are there any specific problems negatively affecting coal delivery? (eg rail condition, shortage of coaches, logistical shortcomings, staff shortages, mechanical/electrical failures, thefts along the line, etc.)
TRF: There have been no major hiccups this year. Nonetheless cable theft is becoming a serious problem. We lost 578 train hours between
1 April 2007 and 31 March 2008 due to cable theft. This translates to the cancellation of 21 export coal trains (344 000 tons lost due to security related problems on the line). We also experienced some derailments and locomotive failures. It must however be emphasised that Freight Rail has not rested on its laurels and is constantly working to increase capacity by for example, implementing a vigorous maintenance backlog investment programme, recruitment and training of 150 train drivers, Increased asset utilisation by reducing cycle time, train yard redesigns and procurement of 110 new locomotives for the coal line.
ZO: Will the coal line be able to deliver the extended capacity of 91mill tons? What assurances can be given?
TRF: Volumes exported through RBCT are not and have never been the sole preserve of Transnet Freight Rail. There are several players in the logistics chain, each with their own set of challenges. But what must be remembered is that TFR has 6-million tons of spare capacity even before its expansion to 78-million tons.
We have consistently stated that we need guarantees that the coal will be available for us to rail. Given the enormity of capital required for the rail expansion as well as the fact that rail technology decisions lock one in for many years, and the fact that the pay-back period for investments of this magnitude is between 10 and 20 years, Freight Rail needs to ascertain the true availability of coal as well as consider other global factors to mitigate risk factors that it will expose itself to. There is a feasibility study being conducted in this regard in consultation with the mining industry and it is due to be completed in the first quarter of 2009.
ZO: Are there plans to increase infrastructure to meet increased demand? Can the number of trains delivering coal be increased through tightening the schedule? How many trains/coaches per day are running?
TFR: Transnet Freight Rail's commitment to the expansion and improved performance of the coal export line is illustrated by the plans for expenditure of R4.911-billion on this corridor. This includes R2.27b expenditure on locomotives, R1.519b on wagons and R824m on Infrastructure. Freight Rail has already placed an order for 110 electric locomotives dedicated to the coal line with Mitsui and these will be delivered and placed in operation starting later this year. The enhancement of the locomotive fleet is absolutely essential to sustain and increase the volumes being transported on the Coal line and to enable us to ramp up capacity to meet anticipated future demand. This investment is in line with our shareholders' mandate to optimise the logistics system of our country and improve the international competitiveness of the South African economy. We will not flinch from our mission to delivery, and thus remain committed to sustaining the competitive advantage that the Coal line provides to our customers.
We run on average 14 200 wagon trains per day in both directions, ie 28 coal trains daily. The line also accommodates 16 General Freight Trains per day.
ZO: Are there any problems relating to your receiving the coal from the mines?
TFR: No; only in adverse weather conditions.
ZO: Are there any problems/delays at the point of delivery (RBCT)? Any other factors affecting your delivery?
TFR: No.
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