Richards Bay Coal Terminal (RBCT) has set its sights on ramping up capacity and improving export volumes, but faces significant hurdles stemming from logistical challenges and operational inefficiencies.
While the terminal offloaded an impressive 6 342 trains and exported 52 million tons of coal in 2024—an increase from 47.2 million tons the previous year—it is constrained by issues including spare parts availability, cable theft, and broader viability concerns.
This was described as “really positive” by executives at the company on Friday during a media tour.
“We are navigating complex logistics challenges (and) our key to success is to collaborate with Transnet. We are on an operational efficiency drive and we are intensifying our efforts to restore operational efficiency theough the the national logistics committee,” RBCT board chairperson, Nosipho Damasane.
She said the collaborations between Transnet and the coal mining and transportation industry had already started to show some upshoots of positivity through volume recovery in 2024. Further recovery would be aided by speedy implementation of reforms across the logistics sector.
Coal mining and exports remain the backbone of South Africa’s economy and accounts for a large chunk of the country’s tax revenue.
With “no massive capital projects in place” for KwaZulu-Natal based coal exporter, RBCT CEO Allan Waller said there was unlikely to be any immediate capacity expansion at the terminal over the next few years.
“We have significant capacity at the terminal,” he said.
On the export front, RBCT is currently set with a small vessel queue of about 15 vessels, accounting for about 1.3 million tons, and largely attributed to the bad weather experienced recently.
RBCT received coal from 69 collieries in 2024. The 51.9 million tons it railed in 2024 was still below the company’s high of 75.6 million tons in 2017.
For this year, RBCT has provisioned to move for 55 million tons to its terminal although its contract rate with Transnet remains at 60 million tons.
“I would like to believe we are going to beat the 50 million tons for last year and be very close to the 60 million tons,” said Waller.
However, to attain this, RBCT has to surmount numerous challenges. According to Waller, these challenges are centred on enhancing volume recovery for the infrastructure.
“There are underlying inhibitors like viability, cable theft, spares availability for the locomotives that have continued to be a challenge,” explained Waller.
“And then security is a continued challenge. Although significant strides have been made in reducing that, it is still one of the biggest volume eaters.”
Additionally, the company has not been able to recruit for vacant positions.
“We have put a freeze on all vacancies under instruction from our board to tighten our belts. We are currently sitting on 51 vacancies,” said Waller.
However, RBCT has been able to undertake infrastructure assessments and is working with other industry players as well as Transnet to find solutions to some of the pressing constraints.
“Operations remained reliable and efficient, with a positive trend in volumes,” added Waller.
RBCT export destinations were mainly accounted for by Asia, which took up 85% of the terminal’s stock. India alone accounted for 50%.
Europe, Africa and Middle East took up about 6.8%, 4.8% and 3.9% respectively. Only about 400 000 tons was exported to China
“So Asia remains the predominant market for South African coal,” said Waller.
BUSINESS REPORT