TNPA looks into options for second RB coal terminal

Transnet National Ports Authority (TNPA) said it has started investigating options on how a second coal terminal would be built at the Richards Bay port next to the existing 90-million-tpy Richards Bay Coal Terminal (RBCT). In a separate development, a new joint venture between Grindrod and investment group RBT Resources will see a R2-billion investment in the Navitrade terminal at Richards Bay to expand coal export capacity, specifically with the black economic empowerment and junior mining companies in mind. The existing capacity of the RBCT is largely used by the large coal companies, like GlencoreXstrata, Exxaro and Anglo American, while smaller coal producers find it hard to get capacity allocations for their product at the port. TNPA is aiming its development plans also at widening the capacity allocations at the port terminal to accommodate smaller mining companies. At the start of the year, the company indicated that it planned to spend more than R30 billion between 2015 and 2020 on two major expansion projects at Richards Bay, including the development of a new open access coal terminal. The parastatal plans to increase the terminal’s capacity to 110 million tpy. However, observers note that RBCT operates below capacity, currently exporting around 70 million tpy of coal, while power utility Eskom is also worried about future coal supplies for its power stations. “Clearly there is a great need for capacity allocations for smaller coal mining companies at the port,” one analyst observed. “But this appears to be more politically driven, if I look at it. RBCT’s 90-milliontpy capacity is underutilised, while Eskom is warning of an imminent coal supply shortage for its power stations in the near future. There appears to be a contradiction here. Eskom fears it won’t have enough supply, while Transnet is preparing to expand export capacity of the mineral.” INSERT Eskom fears it won’t have enough supply, while Transnet is preparing to expand export capacity of the mineral.