Rail link to South African coal export port restored

The rail line to the Richards Bay Coal Terminal (RBCT) will resume full capacity this evening following six days of disruption caused by a derailed train.

The second line connecting the terminal to the wider rail network will open at 18:00 local time, operator Transnet Freight Rail said.

One line reopened on 22 June, meaning that the key link between South African coal mines and the RBCT has been running at 50pc of capacity this week.

Around 17 cars of a 200-wagon coal train derailed at Uloliwe on 18 June, prompting the closure of the line between Ermelo and the RBCT.

Coal railings to the RBCT fell to 590,000t in the seven days to 22 June, down by 860,000t on the week. This led to a stockdraw at Richards Bay, with inventories falling by 940,000t on the week to a two-month low of 4.1mn t.

But the disruption has had little impact on prices, amid slim demand in the international markets and plentiful South African supply.

Argus

' fob Richards Bay NAR 6,000 kcal/kg prompt assessment fell to a seven-week low of $50.86/t yesterday, down by $2.55/t from 18 June.

Domestic coal demand in South Africa may also be affected by a swathe of unplanned outages at utility Eskom's coal-fired power stations.

The utility has urged the public to reduce power consumption by switching off non-essential appliances to maintain the integrity of the grid amid unplanned outages at the 4.1GW Majuba and 3.7GW Lethabo stations and two units at the 4.1GW Kendal plant. The return to service of the 3.6GW Duvha and Tutuka power stations has also been delayed.

"While we expect some units to return to service soon, this situation may persist until the weekend," Eskom said.

South Africa is in the midst of its peak winter demand period. Demand neared typical levels last week, after falling to around a quarter below normal earlier in the year owing to restrictions aimed at containing the Covid-19 pandemic.

By Alex Thackrah