Talking to the press during June, acting Transnet CEO Chris Wells conceded that Transnet Freight Rail was largely to blame for the disappointing performance of the Richards Bay export coal line. This was after taking into account the downturn in the coal export market related to the recession, as well as seasonal problems in output from the mines. Annual volumes carried on the line have decreased every year for the last five, from 68.8 million tons in 2005-6 to 61.8 million in 2009-10. In 2004-5, “world-class” performance was claimed.
Transnet is determined to put the situation to rights, Wells says, pointing out that during the final quarter of the financial year to 31 March 2010, volumes conveyed grew by 6.3%.
Transnet is working with the coal industry to get actual performance closer to the 70 million tons per year (mta) current available capacity, and to raise throughput to 81mta by 2014/15. Even higher levels are foreseen thereafter –between 90 and 100mta.
However, upgrading of the order of R15 billion needed to meet such targets would depend on Transnet securing take-or-pay contracts from the mines, but they would only participate if they were confident about market prospects.
Though recent upgrading means that the Richards Bay Coal Terminal can handle 91mta, but the railway – according to Wells – is “only one impediment to matching that capacity, inadequacy of mining capacity being the other.”
Current contracts between Transnet and the mines remain short-term, until expansion plan details are finalised.

Original article [Railways Africa]