Spoornet promises 'imminent' decision on RB coal rates

Leonard Neill NEGOTIATIONS FOR an agreement on rail rates for the additional 10 million tons of coal which Spoornet expects to ship through Richards Bay annually are in progress and 'well on track', with an announcement of their general approval imminent, says Spoornet spokesman Mike Asefovitz. Capacity lift He was responding to a statement by Nigel Stevens, general manager of Richards Bay Coal Terminal, that the green light for the expansion of the terminal facilities was expected shortly, but was being delayed by negotiations with COALlink, the Spoornet business unit which was established to operate the dedicated coal line between Ermelo and Richards Bay to serve the terminal. The planned expansion will lift the terminal's capacity from 72 million tons annually to 82 million tons. It will cost R600 million, and will generate more than US$300 million a year with annual coal exports - mainly to Europe - being boosted from the present $2,16 billion to $2,4 billion. "Spoornet looks on this project as incredibly important in the country's development, and as a result we have been going out of our way to meet all the requirements," says Asefovitz. "A number of offers have been made and it now rests with the terminal operators to accept whichever is favourable." According to Stevens a core project team has been appointed and tenders have gone out which will be awarded as soon as the rail contract has been finalised and final project approval has been given. The expansion will be the fifth at the terminal since it was established in 1976. Construction is expected to create an estimated 1 000 direct and 3 000 indirect temporary jobs before the expansion is commissioned at the end of 2003.