Port activity sags with bulk glut
The total cargo handled at the local port dropped by 6% year-on-year.
A SURPLUS in the global supply of iron ore and coal continues to hit the Port of Richards Bay’s bulk cargo business.
The total cargo handled at the local port dropped by 6% year-on-year, from 8.16-million tons (mt) in December 2013 to 7.67mt in December last year.
Last month, analysts stated prices for iron ore and coal, as well as oil, plummeted to levels last seen during the 2008/2009 financial crisis.
Both imports and exports of the raw materials started to plunge from September after enjoying a steady climb between February and August.
In fact, the Richards Bay Bulk Terminal still celebrated loading a record-breaking 1.49 million tons of product in September – a significant jump from its original target of 1.32 million tons.
According to the Port of Richards Bay Transnet Port Terminals (TPT) Corporate Affairs Manager Mfundo Ndwandwe, the sudden dip was inevitable.
‘With global markets down, our operations declined – not only for Transnet terminals, but also other terminal operators like RBCT (Richards Bay Coal Terminal) and Grindrod,’ said Ndwandwe.
‘It has been experienced in South Africa and ports abroad where we export to for the past four months.’
The slump sent Transnet’s yields to mount and in October compelled the state-owned ports operator to resume its R900-million monthly funding programme.
Transnet said the oversupply of coal and iron ore caused its haulage revenue to drop in the midst of a seven-year investment plan to build new rail tracks and upgrade harbour infrastructure.
