THE Richards Bay Coal Terminal was up and running again on Sunday after a nine-day power outage that cost the coal industry close to R2-billion – money that can never be recovered.
The first of two power cables that failed two Fridays ago was energised at 6am on Saturday, after which RBCT maintenance staff worked at full steam to get the plant going.
This included repairing electrical damage sustained during a power surge when the cables blew.
‘Four of the five tipplers are operating again and three of the four shiploaders are discharging coal to vessels at the quayside,’ RBCT spokesperson Alan Waller told the Zululand Observer on Sunday morning.
‘In terms of operating capacity, it will take until the end of March to return to normal levels and make up the shipping backlog.
‘All the stakeholders have co-ordinated their efforts to get the value chain restored.’
While only one of the two cables has been restored, Waller said the power supply was now effectively ‘guaranteed’.
‘However, the infrastructure is old and we will be more relaxed when the second cable has also been repaired.’
Meanwhile, cause of the cable breakdowns is certain to be hotly investigated, with multi-millions of rands in shipping penalties riding on possible culpability in terms of maintenance or damage issues.
The oil-filled 132kV cables run parallel in trenches within a servitude, to protect them from vehicle damage.
Oil pressure is regularly checked.
6 FEBRUARY 2014
Black week for coal
IT’S been nearly a week since the Richards Bay Coal Terminal (RBCT) and other South Dunes companies ground to a halt after municipal high voltage cables failed.
And with each passing day, the cost of the power outage soars.
Coal exports alone are losing an estimated R200-million a day, which means by Friday morning the figure will be heading towards one and a half billion rands.
Add to that the cost to shippers – about $30 000 per ship per day, multiplied by the number of vessels waiting to loaded – and the situation is dire indeed.
Two 8km municipal oil-filled 132Kv electric cables that feed RBCT as well as Island View Storage (IVS), Engen and CoalLink, via the Hydra substation, broke down at about 7.30am last Friday.
At RBCT, even the telephones and emails are silent, with staff having to use private cell phones and email addresses.
‘At this time (Wednesday afternoon) the power outage is still continuing,’ said RBCT spokesperson Alan Waller.
‘We are advised by the municipality that power should be back this Friday, 7 February.
All shipping operations and coal train offloading activities at the world’s biggest single coal terminal ground to a halt last week when the cables reportedly ‘failed’.
Electricians have been working non-stop to effect repairs, which may at best be temporary.
While reasons for the breakdown of the aging cables are being sought, with fingers pointing to possible maintenance issues, questions are also being asked as to why the budgeted replacement of the cables has not happened.
Speculation is that this is linked to the City’s inability to spend more than 15% of its capital budget, or the lack of capacity in the electrical department.
‘What is a fact, is that an incident of this magnitude could lead to a crisis of confidence in both the City and the terminal,’ one business leader told the Zululand Observer.
‘Questions as to other infrastructure reliability will also be asked.
‘We are trying to attract industry and the IDZ is lining up tenants, and this type of calamity can only damage our reputation.’
4 FEBRUARY 2014
Terminal standstill
THE normally bustling Richards Bay Coal Terminal (RBCT) resembled a ghost town this week after shipping operations, rail activities and coal exports movements ground to a halt.
This following a massive power outage due to the failure of two, 8km municipal oil-filled 132kv electric cables that feed RBCT as well as Island View Storage (IVS), Engen and CoalLink, via the Hydra substation.
It’s a costly breakdown as the queue of ships lining up to enter the port lengthens.
Coal exports alone run into about R200-million per day, which means already a loss of about R1-billion .
‘The situation is insane,’ said one member of the shipping fraternity.
‘Nothing can operate and the logistics chain is immense: trains are delayed as tipplers and stacker/reclaimers stand idle, and ships stand waiting at the quayside.
‘Ships that were loading on Friday are still there, and it costs shippers about $30 000 per ship per day. Multiply that by 20 vessels and the queue that’s growing and we’re talking vast sums.
‘This is easily the worst incident in the terminal’s history, in my opinion.’
Breakdowns are normally considered ‘acts of God’ in shipping contracts, and the bill is for the owners – but already questions are being asked as to why the cables failed, with fingers pointing to possible municipal maintenance issues.
At RBCT, even the telephones and emails are silent, with staff having to use private cell phones and email addresses.
A joint media statement issued late Monday by Transnet Freight Rail (TFR) and RBCT said: ‘Although the export coal service has been suspended the general freight business still continues unhindered.
‘TFR, RBCT, Eskom and the uMhlathuze Municipality are working continuously to get the system back up and running again.
‘The municipality has advised that power to the first cable is expected to be restored by Wednesday and the second cable by Thursday.
‘It is expected that the coal value chain will be partially functional within the next three days with an expectation of it being fully operational by the week ending 9 February (Sunday).
‘Discussions have taken place between all major stakeholders including the mines, TFR, RBCT and the municipality on recovery plans.’
Ammonia gas caution
The power outage, which comes on the back of the coal value chain achieving record railings of 70.81mt in 2013, has also cut off the supply to IVS, a designated Major Hazardous Installation where about 8 000 tons of ammonia is currently being stored under chilled conditions.
Without electricity, the product has to be flared to maintain pressure levels.
While this can be continued almost indefinitely and poses minimal risk, according to IVS, the burning off of product has a cost implication.
But the Richards Bay Clean Air Association believes the dangers should not be underestimated, and raised concerns about preparedness for a worst case scenario, however unlikely this may be.
Managing Director, Hanif Mahommed said in a statement: ‘The RBCAA has been in contact with IVS, and has established that IVS is currently flaring ammonia from their storage vessels.
‘It is not clear to the RBCAA how effective the flaring is and what the impact is on the surrounding communities.
‘The poor state of the City’s electrical infrastructure, which supplies these facilities, now leaves City residents vulnerable to possible ammonia gas vents which could have potentially harmful effects.
‘The preparedness of the City’s Disaster Management Unit to deal with a worst case scenario is unknown, which raises serious concerns should the evacuation of residents become necessary.’
3 FEBRUARY 2014
Power problems for coal terminal
SERIOUS disruptions to power in the harbour South Dunes area are receiving top priority from the City.
The failure, expected to last at least five days, is having a massive impact, affecting coal exports as well as coal suppliers.
‘At midday on Friday, the municipality experienced cable failure supplying power to the port area (RBCT, Engen, IVS and Coalink),’ Municipal Manager Dr Nhlanhla Sibeko reported to the Zululand Observer on Sunday.
‘There are two 8km oil-filled electric cables that feed these four affected companies which failed, however we are constantly monitoring the situation.
‘Currently we have one company that can maintain these cables and they are on site to deal with the matter.
‘It is estimated that electricity in these areas should be back on by Wednesday morning.
‘The municipality wishes to apologise for the inconvenience caused by the cable failure supplying electricity to the Port area,’ said Sibeko.
‘As a long term solution, a plan is underway to get newer technology to mitigate this risk in the future.
‘Politicians in the region and the municipality are managing the matter and we are in touch with our National Government for an urgent intervention.
‘The municipality takes this matter very seriously as it affects the economy of the country as far away as Mpumalanga.
‘It is against this background that the municipality will do everything in its power to resolve this unfortunate incident.’
The City apologises for the “inconvenience” and calls this an “unfortunate incident” – Talk about adding insult to injury. What the City should be apologising for and taking corrective action on is the root cause of this disaster – an unprecedented level of incompetence within uMhlathuze Municipality which is bringing our City to its knees.
Yip, This is what happens when you neglect to do MAINTENANCE. Clearly this was not done. They were warned !! Why was the budgeted replacement for the cables not used ? We the public need answers.