Exxaro Resources, a diversified resources company, anticipates a 6% decline in export coal sales volumes for the six-month period ending June 30. The expected sales volume is 2.51 million tonnes, compared to 2.67 million tonnes recorded in the previous six months ending December 31, 2022. This decrease is primarily attributed to the poor rail performance of Transnet Freight Rail (TFR) to the Richards Bay Coal Terminal and lower export prices.
According to FD Riaan Koppeschaar’s statement to shareholders, TFR transported 19.95 million tonnes of coal to the RBCT during the five months ending May 31. However, this figure is equivalent to an annualized rate of 46.46 million tonnes, indicating a potential shortfall.
Exporters face multiple challenges that negatively affect their performance, including poor locomotive availability, train derailments, cable theft, and vandalism. These issues contribute to disruptions in coal transportation and impact the ability of exporters to deliver coal economically to alternative ports.
The pre-close statement highlights the difficulties faced by Exxaro Resources and other exporters in maintaining consistent coal export volumes due to the ongoing challenges with Transnet Freight Rail’s rail operations and infrastructure security.
June 27,2023