South Africa has recorded an increase in coal exports for the first time in seven years, with shipments from Richards Bay Coal Terminal (RBCT) reaching 52.1 million tons in 2024 a 10% rise from the previous year.
This improvement comes as state owned logistics company Transnet efforts to address longstanding rail transport challenges.
This was disclosed in a company presentation, which stated that the volume of coal exported now aligns closely with the amount transported by rail from inland mines.
Despite falling short of its target to deliver 60 million tons of coal to RBCT in 2024, Transnet’s improved rail performance suggests that measures to combat issues such as sabotage and locomotive shortages are beginning to yield results. The terminal has set an ambitious target of 55 million tons for the current year.
Industry stakeholders believe these efforts mark a turning point for South Africa’s coal export sector.
“We are seeing positive changes, and we expect even better performance in the coming years,” a senior official from Transnet said.
South African coal producers, including Thungela Resources and Exxaro Resources, have acknowledged the strides made in improving rail operations.
In December, both companies expressed optimism that ongoing initiatives would further enhance transportation capacity.
An internal report obtained by Bloomberg in August suggested that repairs and upgrades could push coal rail operations to record levels by 2028. The report outlined strategies aimed at strengthening infrastructure and preventing disruptions caused by theft and equipment failures.
Coal exports play a crucial role in South Africa’s economy, contributing significantly to foreign exchange earnings and job creation.
More than 80% of the country’s electricity is generated from coal, making it a crucial pillar of the economy.
However, persistent logistical challenges have hindered the industry’s full potential in recent years.
A market analyst noted that steady improvements in rail logistics could restore investor confidence in South Africa’s coal sector.
“If Transnet continues on this trajectory, we could see a substantial boost in export figures, which would benefit the entire economy,” the analyst stated.
RBCT, Africa’s largest coal export facility, remains a key player in global energy supply, particularly as European and Asian markets continue to seek reliable sources of coal amid ongoing energy transitions.
