Rail shutdowns add to coking coal logistics squeeze

Queensland rail operator Aurizon has informed customers about maintenance taking place on parts of the Central Queensland coal network this month, adding to coking coal consumers' worries of a supply disruption at the end of the year.

The Newlands system, which serves the port of Abbot Point, will be shut for two days from 10-11 October. The Goonyella railway system, which serves the ports of Hay Point and Dalrymple Bay Coal Terminal (DBCT), will be shut for two days from 18-19 October. The Blackwater line, which serves the port of Gladstone, will be shut for 58 hours from 22-24 October.

Aurizon has stressed that these maintenance activities are scheduled and communicated to all stakeholders involved in advance to allow for better coordination across the supply chain, an Aurizon spokesman said.

But the shutdowns may further tighten supply in a market that already has two major maintenance works scheduled at different ports — a two-month shutdown of one berth at the BHP Mitsubishi-operated Hay Point starting today, and maintenance at DBCT's berths No.3 and No.4 from 8-14 October and 5-25 November.

Maintenance shutdowns are also scheduled at Abbot Point, but these are minor. Berth No.2 will be shut for 12 hours on 12 October, while berth No.1 will be shut for 12 hours each day on 15 and 18 October. But these short closures may potentially cause longer vessel queues at Abbot Point, as suppliers that cannot use Hay Point and DBCT may attempt to divert some shipments to Abbot Point.

DBCT has been grappling with longer-than-average vessel queues, ranging from the mid- to high-30s for at least the past two months. Queues went down slightly last week to just below 30, but this was likely caused by delays at some destination ports because of natural disasters, a Japanese trader said. Queues have gone back up to 38 by the start of this week.