A train has derailed at Vreiheid in northern KwaZulu-Natal disrupting coal traffic bound for the Richards Bay Coal Terminal (RBCT) according to South Africa's Transnet Freight (TFR).
The accident occurred on 18 May in the southern half of the coal line which runs from Ermelo to Richards Bay while the train was shunting at Vreiheid. TFR said it does not have an estimated time for when the repairs will be concluded. Both parts of the coal line were closed initially but market participants suggest there is movement on Line 2 now, with some speed restrictions.
A South African coal producer told Argus they have been unable to rail any tonnes since 18 May. "[Transnet] is clearing all the loaded trains at Vreiheid, Ermelo and at the mines. These trains were loaded on Saturday, but still staged at the mines because of the derailment," he said.
Railings to RBCT for 13-19 May were 8.5pc lower on the week at 915,000t, against this year's weekly average of 930,000t. The decline cannot be attributed to the derailment yet.
The coal line closure is likely to affect volumes in the coming weeks, ultimately straining export volumes in July, when the north corridor is due to remain shut because of planned maintenance. Current stocks at RBCT stand at 2mnt, but if exports continue at the same rate for another week, without any receipts from the coal line, the stocks will edge close to the 1mn t mark, not seen in the last four years.
