http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.16Change: -0.05
R/$ = 12.08Change: -0.14
Au 1187.35 $/ozChange: -19.90
Pt 1124.50 $/ozChange: -24.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 10, 2012

Transnet expects to haul up to 75Mt of export coal in 2013

Back
Transnet CE Brian Molefe outlines his approach to the current debate on declaring coal a strategic resource. Camera Work: Nicholas Boyd. Editing Darlene Creamer. Recorded: 10/7/2012.
 
 
 
Johannesburg|Africa|Botswana|CoAL|Eskom|Export|Mining|Resources|SECURITY|Transnet|Africa|South Africa|Swaziland|USD|Coal Mining Customers|Energy|Energy Mineral|Freight Logistics|Logistics|Power Generation|Power-generation|Brian Molefe|Power
|Africa|Botswana|CoAL|Eskom|Export|Mining|Resources|SECURITY|Transnet|Africa|||Energy|Logistics|Power Generation|Power-generation|Power
johannesburg|africa-company|botswana|coal|eskom|export|mining|resources|security|transnet|africa|south-africa|swaziland|usd|coal-mining-customers|energy|energy-mineral|freight-logistics|logistics|power-generation|power-generation-industry-term|brian-molefe|power
© Reuse this



JOHANNESBURG (miningweekly.com) – State-owned freight logistics group Transnet expects to haul between 73-million and 75-million tons of export coal during its 2012/13 financial year, notwithstanding softer market conditions for the energy mineral.

CE Brian Molefe said on Tuesday that the group would have breached the 70-million-ton level in 2011/12 had it not been for the fact that a number of trains had been cancelled by miners during the period. In the event, Transnet Freight Rail (TFR) moved 8.8% more export coal in the year to March 31, 2012, resulting in volumes rising to 67.7-million tons from 62.2-million tons in the prior year.

The performance consolidated a turnaround in the Ermelo-to-Richards Bay corridor, which began during the 2010/11 period. Prior to that, the line had repeatedly reported declining volumes, which slumped to 61.8-million in the 2009/10 financial year.

TFR CE Siyabonga Gama said it had not yet seen a fall-off in demand from coal mining customers during the current financial year, which would run until March 31, 2013, despite some price weakness.

Coal prices had been recovering recently and were trading at around $90/t. However, during the early parts of 2011, the price of South Africa thermal coal was trading at above $125/t before retreating to below $90/t in June.

Gama said TFR anticipated that it would rail 7.7-million tons during July, well above the tempo required for the corridor to meet it volumes target for the year as a whole. But he stressed that the line’s performance was never “linear”, as it was prone to seasonal factors.

Nevertheless, Molefe said that it was not “unthinkable” for the corridor to meet its budget for the year.

STRATEGIC RESOURCE?

Molefe was also not overly concerned by the current discussion about declaring coal a “strategic mineral” in the interest of shoring up domestic supply for Transnet’s fellow State-owned company, Eskom.

Eskom had signalled its concern about a growing competition for coal that had previously been designated as ‘Eskom-grade’. There was demand for such low-quality material particularly from Indian utilities, which had reduced Eskom’s bargaining power and had led the utility to suggest that some coal resources should be declared ‘strategic’ so that it could be dedicated to the development of the local power generation market.

The utility wanted first right of refusal on coal that would previously have been considered domestic grade and there were even some suggestions of asking government to hold back Transnet in developing additional export capacity until such guarantees had been secured.

However, South African coal miners continually warn that any move to restrict exports could have adverse consequences on domestic supply security, owing to the fact that the incentive to develop such capacity was based on their ability to earn a higher return through exports.

Molefe was sanguine, saying South Africa could not consume all the coal it mined, “particularly if you take the Waterberg [coal resources] into consideration”.

He was, thus, aiming to directly influence the current policy debate, stating that Transnet’s role was to adjust to the policy of the day. “If the volume of coal comes down, we will have to adjust our business plan”.

But Gama stressed it was not an “either or” situation when it came to the issue of export and domestic coal. He said the power stations were effectively a “trash can” for the consumption of lower-quality coal and would continue to unlock export-quality resources. “You have to move both,” he averred.

WATERBERG PLAN

For that reason, TRF was pushing ahead with plans to provide the rail capacity required to unlock domestic and export coal resources from the Waterberg region of the Limpopo province, as well as resources that could be mined in neighbouring Botswana.

It was planning a phased introduction, with the first phase likely to facilitate the movement of 23-million tons and later phases raising overall capacity to as much as 80-million tons.

But the immediate priority was to reduce congestion at Ermelo by diverting general freight through Swaziland, studies for which were progressing.

To open up the Waterberg, Transnet will first aim to maximise the use of its existing assets by adding some new link lines, before pursuing major new line development plans.

The Waterberg developments are part of the group’s R300-billion, seven-year capital expenditure plan. But studies are still needed to determine the precise timeframes associated with the introduction of new capacity from the region.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Economic bilateral relations between South Africa and Peru will receive a shot on the arm when businesspeople from the two countries gather in Lima, Peru, to launch the South Africa–Peru Chamber of Commerce (Sapcham) on Wednesday. The chamber aimed to increase trade...
Trade union Solidarity on Tuesday lambasted government for importing foreign skills in the form of 48 Cuban engineers, instead of appointing South African engineers, calling it a “disgrace”. The first of 48 Cuban engineers, appointed to improve service delivery in...
On the back of an “extremely positive” 12 months to February 28, diversified workforce management and business process outsourcing company Adcorp increased its headline earnings a share by 58% to 298.5c, benefitting from the first full-year inclusion of Labour...
More
 
 
Latest News
Economic bilateral relations between South Africa and Peru will receive a shot on the arm when businesspeople from the two countries gather in Lima, Peru, to launch the South Africa–Peru Chamber of Commerce (Sapcham) on Wednesday. The chamber aimed to increase trade...
Tongaat Hulett CEO Peter Staude
JSE-listed Tongaat Hulett CEO Peter Staude told shareholders and analysts on Tuesday that of the company’s land assets, 39% was either in the process of undergoing an environmental-impact assessment, being released from agriculture, had formally submitted a planning...
Trade union Solidarity on Tuesday lambasted government for importing foreign skills in the form of 48 Cuban engineers, instead of appointing South African engineers, calling it a “disgrace”. The first of 48 Cuban engineers, appointed to improve service delivery in...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96