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Headline:  Venezuela reopens border to Colombian coal Printer friendly 
Time:  28 Jul 2010 13:01 GMT
Venezuela reopens border to Colombian coal

Bogota, 28 July (Argus) — Venezuela has reopened its border to Colombian coal trucks on their way to export terminals, following tension between the two countries over allegations on 22 July that Colombian Farc rebels have been operating from within Venezuela. This led to the Venezuelan government closing the border. Trucks from Colombia carry coal across the border to export terminals on Lake Maracaibo.

But traffic is still being delayed at the border, as Venezuelan customs are processing traffic slowly, local coal producers association Asocarbon director Oscar Ortega said. “Coal exports are passing through Venezuela, but the service is slow,” Ortega said.

Last year, the entire province of Norte de Santander, which is landlocked and sits adjacent to Venezuela, exported 1.4mn t of coal through Venezuelan ports on Lake Maracaibo, including Puerto Palmajero and La Ceiba. It also exported 200,000t through Colombian ports. The border closure has affected coal producers and trading firms that use Venezuelan routes and ports in order to reduce their transport costs by $15-30/t compared with the cost of moving their coal through Colombian ports.

This month's border closure is the latest in a series of disruptions. In 2008, Venezuela blocked the transit of coal trucks after Colombia bombed a rebel camp in Ecuadorean territory, killing rebel commander Raul Reyes. And there was a month-long halt in early 2005, when Venezuelan president Hugo Chavez prohibited the transit of Colombian coal after Bogota apprehended a Colombian insurgent in Caracas.

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