Coal terminal ‘exceeded expectations’
RBCT CEO states the company ‘went through the light’ in spite of global market challenges
WHILE domestic coal mines have been battling to compete with low global coal prices, it did not set back the Richards Bay Coal Terminal’s (RBCT) performance last year.
At a media engagement held on Tuesday at the terminal, RBCT CEO Nosipho Siwisa-Damasane announced the company exceeded its goal of exporting 75 million tons (MT) of coal during 2015 by 380 000 tons of product.
‘This is certainly something to brag about considering coal pricing,’ said Siwisa-Damasane.
‘It is a long, cold winter for coal.
‘We do not foresee breaking the 75 MT target this year considering the tough conditions.’
In the past five years, exports have steadily grown from 63.4 MT in 2010, 65.5 MT in 2011, 68.3 MT in 2012, 70.2 MT in 2013 and 71.3 MT in 2014.
Surprisingly, China which only three years ago was the terminal’s largest importer, did not take a piece of coal from RBCT last year.
India has since become the prominent buyer representing the Asian market, taking the bulk of 59% of total exports last year.
But despite growing trade with India, there was an overall 7% drop of exports to Asia.
There was also a 6% decrease in coal sent to Europe.
Northern and East Africa on the other hand have more than doubled their demand for RBCT’s coal from nearly 5 MT in 2014 to 10.5 MT last year.
Imports on track
Tonnage delivered by rail last year fell just under the 75 MT mark at 73.9 MT, but Siwisa-Damasane said RBCT’s relationship with Transnet Freight Rail is growing.
‘Jumbos have increased by 0.7%, but we would like to see more.
‘Our equipment is designed to handle bigger trains and more Capesize vessels.’
Meanwhile, stockpiles were described as ‘comfortable’ with the average level recorded last year at 4.7 MT.
‘We have sufficient capacity for the market at the moment.’
No job losses
Siwisa-Damasane explained the terminal cut costs by eliminating ‘thrills’ like parties and celebrations and managed to avoid having to retrench any of its 504 employees.
‘We have managed to stay flat on charge per ton, but if a staff member leaves the company, we are not replacing any positions.’
