A train derailment on the Blackwater line of the Central Queensland Coal Network (CQCN) has stopped most deliveries of coal to the 102mn t/yr Port of Gladstone and may take some time to clear.
A coal train operated by Australian haulage firm Aurizon collided with a freight train at 7:15pm Australian Eastern Standard Time (08:15 GMT) on 29 January bringing down overhead power lines. An investigation is under way and the corridor is closed until recovery teams are able to restore the line, according to Aurizon that also operates the CQCN tracks.
The Blackwater line connects coal mines in the lower Bowen basin to Gladstone. The incident occurred just north of Gladstone and will stop all coal from arriving via the Blackwater system. The smaller Moura rail line is still operating and delivering coal to Gladstone. Moura delivered 12.9mn t of coal to Gladstone in 2021, while Blackwater delivered 50.5mn t.
The incident follows floods that disrupted the Newlands and Goonyella rail lines on the CQCN earlier this month. stopping deliveries to the 85mn t/yr Dalrymple Bay Coal Terminal (DBCT), 55mn t/yr Hay Point and 50mn t/yr Abbot Point terminals.
Ship queues are still above average at the flood-affected ports, with 51 vessels waiting off the adjacent ports of DBCT and Hay Point on 30 January and 14 off Abbot Point compared with averages of around 24 and three respectively. Gladstone has a more average queue at 22, although this may grow if deliveries of coal are disrupted by the derailment for more than a few days.
Argus last assessed high-grade 6,000 kcal/kg NAR thermal coal at $319.23/t fob Newcastle on 27 January, down from $410.17/t on 9 December 2022 and from a peak of $444.59/t fob on 9 September 2022. It assessed the premium hard low-volatile metallurgical coal price at $332/t fob Australia on 27 January, up from $253.30/t on 9 December last year and above the previous peak of $320.90/t on 7 November.
