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Tuesday, 07 July 09
RBCT COAL EXPORTS TO REMAIN BELOW CAPACITY IN 2009


Coal volumes railed to South Africa’s Richards Bay Coal Terminal are continuing to fall far short of the corridor’s nameplate yearly capacity of 70 million tonnes, coming in at closer to an annualised 60 million tonnes.

Mr Chris Wells acting CEO of Transnet said that South Africa will do well to achieve volumes of between 64 million tonnes and 65 million tonnes for the year as a whole.

At the start of its 2009 financial year in April, the State-owned group’s rail division said it had budgeted to handle 69-million tons up until March 31, 2010, but undersupply from the mines had all but put paid to that ambition.

Rail volumes last year fell to a very disappointing 61.9 million tonnes, capping a three year trend of underperformance, with volumes having fallen consistently since 2006, when 68.8 million tons was railed.

There has been a concerted Transnet effort to improve rail’s performance since September, but now the mines are running short of supply. Both sides need to reach a deal that optimises South Africa’s foreign exchange potential.

Anglo American suitor Xstrata last week published an open letter in which it set out its rationale for an all-share ‘merger of equals’ that bore none of the usual characteristics of shareholder premiums and worker retrenchments.

Xstrata also said that South Africa will be the net beneficiary of the transaction, which it describes as a merger of two equally sized companies from which equally sized shareholder benefits will accrue. But Anglo remains implacably opposed to the deal, and its stance has won applause from the South African government and local trade unions.

Source: Steel Guru
(
http://steelguru.com/news/index/2009/07/07/MTAxMjg2/RBCT_coal_exports_to_remain_below_capacity_in_2009.html)



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