On July 18, South Africa's state-owned rail and ports operator, Transnet Freight Rail, announced that the country's coal shipments to ports could increase if a dispute with China's CRRC E-Loco is resolved. The CEO of Transnet Freight Rail, Sizakele Mzimela, stated that resolving the impasse could enable them to ramp up coal shipments to about 81 million metric tons to ports.

South Africa experienced a record decline in coal shipments last year, falling to about 50 million metric tons due to various operational challenges, including a workers' strike, floods, cable thefts, and vandalism of infrastructure. The lack of locomotives has led to a failure to move 18.5 million metric tons of coal annually, forcing major coal producers like Thungela Resources and Exxaro Resources to stockpile the fuel at their mines.

Mzimela expressed confidence that if a resolution is reached with CRRC, the Chinese supplier could quickly bring back the idled locomotives. Transnet's target for this year is to rail about 60 million metric tons, with a potential capacity increase to 74 million metric tons by March 2024 and ultimately 81 million metric tons in 2026 if the Chinese locomotive deal is restored.

The dispute between Transnet and CRRC arose when Transnet cancelled the supply of 1,064 locomotives from four suppliers, including CRRC, citing the contract's illegality. In response, CRRC withheld locomotives and spare parts, affecting Transnet's ability to transport bulk commodities to ports. The two parties have now agreed to resolve the dispute, but CRRC needs to reach agreements with South Africa's central bank and tax authorities before resuming operations in the country.