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Rail rates for coal rise to stem subsidisation

09 Dec 2003 - by Staff reporter
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Leonard Neill SPOORNET WILL increase its rates for the delivery of coal to Matola (Maputo) and Durban Coal Terminal but has no immediate plans to introduce new higher rates for cement, lime and timber consignments to the country’s harbours. Rail rates to the Durban terminal will increase by 18% and to Matola 28-30%. New price structures will be introduced in the first quarter of 2004 . Spoornet receives no subsidies and is now forced to price its service at levels where it can recover costs and replace assets, says spokesman Mike Asefovitz, “We have previously stated that the export rate was being subsidised by the domestic rate and we are intent on closing the gap,” he said. “Spoornet has no option but to increase these rates.” Contrary to popular rumour, Spoornet is not considering closing the Durban terminal, according to Asefovitz. Discussions with National Ports Authority regarding the future lease of the site or its possible relocation are in progress. Preferred options for coal exports are Richards Bay and Maputo because of their close proximity to the coal fields. “With regard to the Mozambique line, the consortium - of which Spoornet is a member - which has to rebuild it is facing high costs that have necessitated an increase in through-put to Matola.” Smaller coal producers are watching with interest the deliberations between shareholders of the independently owned coal terminal at Richards Bay and NPA and South African Port Operations. Attempts to grant greater concessions to the smaller mining concerns who are not shareholders to encourage them to export through the terminal are under consideration. This, in turn, could have a major impact on Spoornet’s coal deliveries. “Other customers like the cement and lime producers are currently in negotiation with Spoornet on rail charges and until these have been completed we cannot deliberate on any possible increases,” said Asefovitz.

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