Mineral exports take a dip
Richards Bay Port sees record ship movements for year, but dip in dry bulk exports.
AFTER a confident rise in shipping activities at the Port of Richards Bay from February to August this year, bulk exports have taken a plunge.
According to shipping statistics from Transnet National Ports Authority (TNPA), total bulk cargo exports, including coal, iron ore and manganese, dropped 4.5% from around 7.8 million tons in September to 7.5 million tons in October, and fell by a significant 11.5% since last October (8.45 million tons).
The declining figures fall on the back of the slump in coal prices and a plunging iron ore market, with both BHP Billiton and Richards Bay Minerals’ (RBM) parent company Rio Tinto seeing their shares shrink this past week.
Iron ore prices also weakened owing to increased production and demand.
This is arguably further pressured by the Ports Regulator increasing the dry bulk cargo tariff by 8.15% since April.
But despite the volatile global market and lack of growth prospects for the coking coal value, Richards Bay Coal Terminal (RBCT) CEO Nosipho Siwisa-Damasane recently said the company remains in a ‘bullish position’.
‘RBCT is on track to achieve the targeted volume of exports for the 2014 financial year, as planned with the Transnet Freight Rail (TFR), and projections remain at 73 million tons (mt) for the calendar year,’ said Siwisa-Damasane.
RBM also took a positive stance in its recent sustainability report.
‘Long-term forecasts are positive and we are confident that we are well-positioned to respond to an increase in demand.’
And according to port movement statistics from the KZN Provincial Treasury, cargo handled at the harbour was the second highest (after last year) in over a decade.
Both the number and gross tonnage of vessels at the port exceeds yearly figures since 2003.
Richards Bay has seen 1 853 ships sailing in with over 71 million gross tonnage so far this year.
