Rail Capacity Limits Richards Bay Expansion


Rail utility Spoornet would not have sufficient capacity on the rail line to the Richards Bay Coal Terminal (RBCT) by 2009 to meet the port’s expanded export capacity, Business Day recently reported. The shareholders of RBCT, who include Anglo Coal, BHP Billiton Energy Coal SA and Xstrata, announced last year they had committed R1.1 billion to expand the port’s capacity by 19 million metric tons (mt) to 91 million mt of coal a year by 2009. Of the expanded capacity, 4 million mt would be set aside for emerging exporters and 9 million mt would be made available by tender to applicants showing empowerment, proven mining capacity, a bankable feasibility study and an undertaking that Spoornet could provide rail capacity. Spoornet Senior Manager of Business Development on the coal line, Mac van der Merwe, said the capacity on the export rail line was 78 million mt of coal a year, for which Spoornet had contracts with coal export companies. Once the decision had been made, Spoornet would be able to increase capacity on the rail line by 3 million mtpy, he said. That meant if it started upgrading the line this year, by 2009 it would still have only 84 million mt of export capacity.