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Friday, August 19, 2011

Freight woes cut Siberia coal shipments - Governor

Friday, 19 Aug 2011

Reuters reported that coal shipments from the Kuznetsk Basin were 4 million tonnes less than planned during May to July due to problems caused by a large number of freight firms.

Mr Aman Tuleyev governor of Kemerovo which includes the Kuzbass fields said that regional coal miners had built up stockpiles of 10.7 million tonnes of coal, double normal levels.

He said that the shortfall was caused by a lack of coordination among freight operators in Kemerovo, where more than 200 firms are active.

A statement on the Kemerovo region's website said that "The situation could worsen in winter, when shipments to thermal power stations begin.”

Shipping delays are frequent in the winter months, when difficulties such as those associated with unloading frozen coal delay unloading.

A large number of private freight operators have entered the market in recent years, and Tuleyev said the problem has been compounded by the ongoing privatisation of the RZhD Russian state rail company's freight operations.

The governor said that "In order to resolve the problem, it is necessary to improve the legal and regulatory framework.”

He asked Russian Prime Minister Mr Vladimir Putin to order the relevant ministries and government departments to take steps to ensure that coal can be shipped from the Kuzbass.

The statement further said that "A number of companies have cut coal output because it is not possible to ship production.”

(sourced from Thomson Reuters)

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