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Coal on track: Transnet and private sector working together

Home Transport & Logistics Exports & Imports Coal on track: Transnet and private sector working together

AN OPERATION agreement between state-owned Transnet and Richards Bay Coal Terminal entered into in November 2023, is adding capacity to Transnet Freight Rail to enable more coal to reach the 91 Mta terminal by rail – the mode of transport for which the terminal is designed.

Over the weekend, Transnet Freight Rail (TFR)  took delivery of seven full sets of batteries procured by Richards Bay Coal Terminal (RBCT). The delivery of the critical spares will improve the reliability of the available locomotive fleet, Transnet said.

Procurement of locomotive spares – batteries and compressors – is one of the joint initiatives Transnet and RBCT embarked on following the conclusion of the agreement. Orders were placed for 50 compressors and 100 full sets of batteries. The first seven sets of batteries have been delivered, with the full order scheduled to be delivered by the end of April 2024.

The compressor order is expected to be delivered between March and June this year. Procurement was done by RBCT and Transnet will pay for the batteries and compressors, Transnet said.

Transnet acting group chief executive, Michelle Phillips, who says that Transnet needs to work closely with the private sector, explains that the agreement between Transnet and RBCT serves as a strategic framework between the two entities to foster collaboration and stability within the South African coal supply chain. It seeks to ensure the efficient and uninterrupted transportation and export of coal through an efficient rail and port system, collaborative problem-solving in the face of interruptions, and compliance with legal and contractual obligations. It also facilitates innovation and investments in infrastructure to support the coal sector, she said.

Phillips said: “The Transnet Recovery Plan, which seeks to improve operational efficiency and profitability, hinges on sustainable collaboration with the private sector”.

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