Transnet issues new Richards Bay MPT coal rules

Transnet Port Terminals (TPT) will limit each coal customer to a maximum of two vessels a month at the Richards Bay multipurpose terminal (MPT) in South Africa, as part of a raft of new measures to manage a sharp increase in coal demand.

A massive increase in global coal prices over the past year has led to a significant rise in volumes handled through the site, which has put a strain on the terminal's resources and led the condition of its roadways to deteriorate, according to a notice sent by TPT to coal exporters seen by Argus.

"To curb excessive demand, we have reduced volumes that each coal customer can ship in a month. The restrictions are counterproductive for the economy and deny miners the opportunity to take full advantage of the global demand forecast in the next six to eight months," TPT said in the note.

Under the new rules, all coal customers will need to contribute with handling equipment for inbound activities, such as shifting and stockpiling, in addition to outbound activities.

Customers will also need to deploy their own equipment for their own volumes, unless it has been agreed between TPT and the customer that the equipment can be utilised to service other customers.

The new rules will be applied from 1 June, according to the note.

The privately owned Richards Bay Coal Terminal is the main export route for South African coal, but neighbouring Richards Bay MPT as well as Durban and other handling facilities in the region have seen increased interest as export avenues in recent months, as shippers look to move supply to market.

By Jack Elliott