South Africa has an abundance of coal reserves, but the coal mining sector’s competitiveness requires an efficient logistical network to move coal from mine to market.

While the industry has faced significant challenges with regard to rail reliability, infrastructure security concerns and port constraints, performance in the sector is improving and collaboration is strengthening.

This was noted by Seriti Resources COO Raymond Makgota during a panel discussion at this year’s Coal and Energy Transition Day, held on July 22.

During the discussion, State-owned Transnet Freight Rail (TFR) coal business unit GM Theo Johnson outlined the progress made on improving the coal corridor.

Johnson noted that TFR had seen a major reduction in security incidents on the line, with up to a 50% reduction year-on-year in security incidents and a 35% increase in locomotive availability.

He said the stability in the business had been established over the last two years, growing from 48-million tonnes to 58-million tonnes last year.

“The state of the corridor is an improving one. We are far from where we need to be, but, definitely, we have moved from the low point that we were two years ago, and it looks like with the effort that the teams are putting in place, we continue to grow the capacity in the corridor.”

Looking forward, Johnson noted that TFR was working on the signalling on the Richards Bay side of the line, adding that the company was currently busy with the line’s maintenance shutdown.

“Once we get out of that maintenance shutdown, we are going to bring back the first phase of that signalling project and, in about October, we are bringing back Phase B of the project. That will take us to have, from a slot perspective, the required slots on the coal line for us to be able to maximise production.”

Johnson added that TFR expected to move about 62-million tonnes of coal to the Richards Bay Coal Terminal (RBCT) this year, with a target for about 65-million tonnes next year and about 70-million tonnes by 2028/29.

“We are very much more aligned in terms of capacity of the line and the initiatives that are going in,” said RBCT CEO Alan Waller, highlighting the terminal’s readiness to handle increased volumes.

Looking at road freight, Road Freight Association CEO Gavin Kelly discussed the role of road freight in South Africa’s coal logistics system as rail performance improves.

He argued that road freight would continue to play an important role in the sector, highlighting the challenges of moving a single commodity from point to point by road.

Given the issue of coal cliffs and the potential future closure or move to new coal mining areas, he argued that trucks could be used to transport commodities from the mines to a railhead.

“A symbiotic relationship between the two modes is what's going to make it work for the country,” he said.