Transnet transported 58-million fewer tonnes of coal, iron ore and other commodities in the 2022/3 financial year than it did 10 years ago, with coal making up a third of its freight.
The state-owned entity attributes the reduced rail capacity to underinvestment in network rehabilitation, vandalism and sabotage as well as to disputes over locomotive contracts.
Its capacity issue is a problem for producers such as Thungela, which may need to stockpile export-bound coal, resulting in fewer tonnes of coal exported and the company losing sales. Such disruptions have severe economic implications for South Africa, one of the world’s leading coal exporters.