Optimum Coal blames Transnet for low delivery

Five years of decling deliveries to Richards Bay Coal
Terminal but a turnaround last year

Friday, Feb 04 201107:04:48 AM
By Allan Seccombe

OPTIMUM Coal has laid the blame for undelivered export coal squarely on Transnet Freight Rail and doubted the utility’s claims it would shift 70-million tons of coal this year, urging it to appoint a CEO to give it much-needed leadership.

"History shows they’ve never done 70-million tons, but if they do, it will be of great (for) the industry," Optimum CEO Mike Teke said. He wanted Transnet to appoint a CEO as soon as possible.

"I’d like to be able to knock on someone’s door, someone who can make a difference. Transnet needs someone to make decisions," Mr Teke said.

Optimum has 318000 tons of export-grade coal stockpiled at its operations, waiting for it to be delivered by rail to Richards Bay Coal Terminal, where it has an 8,44-million-ton annual allocation.

"Transnet Freight Rail has fallen short of our expectations. If we had received all our trains we would not have these stockpiles," Mr Teke said. "They could have done better."

Transnet Freight Rail has set a target this year to deliver 70-million tons of coal to Richards Bay as it moves towards its target of 81-million tons, Divyesh Kalan, GM of Transnet, said at the McCloskey Coal Exports conference in Cape Town this week.

Last year Transnet Freight Rail missed its 65-million-ton commitment because of a strike that knocked 2-million tons off that target and a derailment that cost it 1-million tons. "We’ve had five years of consistent decline in deliveries to Richards Bay Coal Terminal, but we had our first year of turnaround last year," Mr Kalan said.

Transnet Freight Rail is working closely with its coal customers to match coal production to rail capacity. It has installed about 40% of the jumbo wagons it wants running on the coal line and has taken delivery of 40 of the 110 new locomotives it is dedicating to the coal haul line.

Meanwhile, Optimum yesterday reported a profit in the six months to end-December increasing to R275m from R16m a year earlier. It may have to raise debt in the financial year ending June to complete a R700m capital expansion programme to develop new mines.(sourced:Businessday)

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