Transnet warns of possible rail force majeure

South African rail operator Transnet Freight Rail (TFR) has issued a "cautionary notice of potential force majeure" for coal deliveries to the Richards Bay Coal Terminal (RBCT) following last week's derailment.

"A force majeure event is deemed to have occurred… as the incident impact has endured for longer than 24 consecutive hours," a TFR notice seen by Argus states.

The derailment occurred on a part of the line with embankments on either side, TFR said, complicating the clearance of wagons before an assessment of damage and recovery time can be made.

A loaded train derailed on 28 April near Hammelfontien station on the line to Ermelo, damaging overhead track equipment, fibre optic cables and track. This required the closure of both coal rail lines, impacting supply from Ogies and Trichardt to Ermelo, and affecting deliveries to RBCT.

TFR said yesterday that it had restored supply from Trichardt to Ermelo, but that line 2 is not expected to reopen until 22:00 local time tomorrow. There is no confirmed reopening schedule for line 1.

API 4 coal prices have risen since the derailment. Argus' NAR 6,000 kcal/kg fob Richards Bay assessment rose to $98.62/t yesterday, up from $90.09/t on 27 April.

By Alex Thackrah