Coal market focus shifts to India

The Richards Bay Coal
Terminal has invested
significantly in its operations
despite the drop in commodity
prices.
According to the terminal
CEO Nosipho Siwisa-
Damasane, expansion makes
sense despite the slow economic
environment.
The
terminal
first opened
in 1976 with
a capacity
of only 12
million tons
per annum.
Currently it
had capacity
for 91 million
tons of coal per year, said
Siwisa-Damasane.
She said while coal prices
were lower and the markets
were changing there was still
hope for coal exports from
South Africa.
The terminal last year hit a
record 75.4 million tonnes, an
increase of approximately
4 million tons above 2014 levels.
Whilst coal exports are
not expected to increase this
year, the terminal has proved
that ongoing investment into
facilities, equipment and
capacity pays off.
Siwisa-Damasane said in
2010 a ton of coal cost around
$170 dollars
while currently
it was trading
at around $72.
“Despite
this we still
need to ensure
that volumes
move and that
we are able to
handle those
movements
well,” she explained. “What we
have seen is that our markets
have changed and therefore as a
terminal we have had to change
our focus. Europe, which used
to be one of our biggest markets,
has decreased significantly and
exports to China have stopped
completely. India, however, is
a market that we have entered
and is growing. We now export
47% of our coal to India.”
Siwisa-Damasane said
there was no doubt that the
coal industry was facing
serious challenges
around finacing and
infrastructure but
ongoing investment
would continue to
address these issues.
“As markets change
so do the strategies. At
present we are seeing
a far bigger mix of
customers and a wider mix
of coal grades than ever
before. At the same time the
number of vessels that
we are handling is
increasing.”
She said
while the
outlook was
not always
positive
it was
also not
necessarily
negative.
INSERT & CAPTION
We now export 47% of our
coal to India.
– Nosipho Siwisa-Damasane