South Africa's Coal Export Surge: A Rocky Journey to Recovery

Coal exports from South Africa's Richards Bay Terminal rose 10% to 52.08 million tons in 2024, driven by improved freight rail performance. The export increase follows a decline from 76 million tons in 2017 due to issues with Transnet. Asia now accounts for 84.5% of exports, with India as a major importer.

Coal exports from South Africa's Richards Bay Coal Terminal (RBCT) surged by 10% in 2024, reaching 52.08 million metric tons, marking the highest levels in three years. This recovery emerges as South Africa sees signs of improving freight rail performance.

State-owned Transnet has faced challenges over recent years, including a lack of locomotives, spares, and instances of vandalism and cable theft. These issues led to a significant drop in coal shipments from a high of 76 million tons in 2017 to a mere 47.21 million tons by 2023, the lowest since 1992.

Prominent companies like Thungela Resources and Exxaro Resources observed better freight rail conditions in 2024. The coal export market has shifted towards Asia, with 43.99 million tons of South Africa's coal heading there, while India's importance rose to 25.75 million tons. European coal imports continue to decline following geopolitical tensions and bans.

(With inputs from agencies.)