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Rain hits coal exports in South Africa

Heavy rains in South Africa have affected coal and maize exports as freight rail operations have been disrupted. South African logistics group Transnet has said 18 trains of export coal were cancelled last week, and also affected an unspecified quantity of maize and corn exports as lines transporting them have been forced to shut. 
 Transnet cancelled 18 trains of export coal
 
 
Heavy rains in South Africa have affected coal and maize exports as freight rail operations have been disrupted.

South African logistics group Transnet has said 18 trains of export coal were cancelled last week, and also affected an unspecified quantity of maize and corn exports as lines transporting them have been forced to shut. 

"The lines remain closed until further notice," it said in a statement.

“Further aggravating the situation is that key ports such as Richards Bay and Maputo have also been adversely affected.”

Increased pressure

As previously reported, the devastating floods in Queensland, Australia have caused global coal prices to sharply increase as 4.5 million tonnes of thermal coal exports have been lost, meaning growing pressure on alternative markets to meet demand. 

However, bottlenecks on the rail line have caused exports to halt at the Richards Bay Coal Terminal (RBCT), affecting exports to power stations in Europe and Asia.

South Africa are major exporters of coal, with last year's totals exuding 63 million tonnes.

Low coal stocks

Congestion is now also a problem at the RBCT as low coal stocks have meant vessels wait for sometimes days to load.

Transnet have expanded annual capacity to 91 million tonnes and are investing in improving their infrastructure.

The company also said that heavy rains had affected mining firms as they were unable to load and off-load rail wagons.

For more top stories, take a look at TSA investigates Activair after allegations of failing to screen cargo for explosives and Supply Chain Digital's list of the top universities and programs fro supply chain management.
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