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S.Africa's Transnet Halts Coal Truck Processing to Restore Order at Richards Bay Terminal

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S.Africa's Transnet Halts Coal Truck Processing to Restore Order at Richards Bay Terminal

Posted on : 21-11-2023 | Author : Nelson Banya

Photo by Thomson Reuters

South Africa's state-owned logistics company, Transnet, announced on Monday its decision to halt the processing of trucks ferrying coal to the Richards Bay terminal in a bid to restore order amidst an overwhelming influx of traffic to the port.

Challenges have arisen for the company in providing adequate freight rail and port capabilities for transporting bulk minerals like coal, iron ore, manganese, and chrome to global markets. These obstacles stem from deficiencies in the railway operations, including shortages of locomotives and spare parts, along with incidents of cable theft and vandalism. Additionally, Transnet-operated ports have grappled with adverse weather conditions and insufficient investment in equipment.

The Richards Bay Terminal's managing executive, Thulasizwe Dlamini, stated that Transnet would suspend ship booking services for coal deliveries brought by trucks until the completion of existing bookings, extending up to February 2024.

Dlamini explained during a media briefing that an unprecedented surge of trucks had been observed arriving at the terminal. As a result, the company intends to temporarily halt vessel nominations, addressing the disruptions and congestion brought about by the influx of trucks, which have posed safety concerns for local municipal authorities.

He clarified that the objective is not to impede coal movement out of the country but to establish a sense of organization amidst the chaos caused by the excessive truck traffic.

Mining companies, confronted with Transnet's infrastructure challenges, have opted for trucking minerals to ports as an alternative, albeit a more expensive and environmentally detrimental choice. The industry has suffered substantial potential export revenue losses due to these complications.

In 2022, approximately 41 million metric tons of mineral ores, equivalent to the capacity of nearly 1.4 million 30-ton trucks, were transported via South African roads to the country's ports, as reported by the Minerals Council.