AN increase in coal deliveries for export from South Africa is behind plans by Johannesburg-listed logistics operator Grindrod wanting to triple capacity at its drybulk port terminals in Mozambique, said Bloomberg News.
Mozambique has become a destination for South African coals because the country’s own exporting infrastructure is plagued by disruption. Some of the disruption is caused by inefficiencies in the way the state-owned Transnet operates the coal lines and port, but it is also a consequence of vandalism and sabotage of state infrastructure.
Capacity at Grindrod’s wholly-owned terminal at the Maputo port, Mozambique’s biggest, will grow to 4.5 million tons (Mt) annually by the end of June from 1.5Mt, said Bloomberg News. Capacity at its 65%-held Matola coal terminal will increase to 12Mt yearly from the current 7.3Mt “in the short to medium term,” Grindrod said on its website.
Mozambique has its own challenges, the newswire said. Trucks crossing the South African border to Mozambique at times can wait up to three days in queues of more than 15 kilometers (about 9 miles) long, it said. “Critical to both projects is unlocking road and rail bottlenecks along the corridor,” Grindrod said.
The Richards Bay Coal Terminal (RBCT) said in January that 2021 coal exports of 58.7Mt were the lowest since 1996. It had planned to export 18Mt more for the year.
Mxolisi Mgojo, CEO of Exxaro Resources which is one of South Africa’s largest coal exporters, described Transnet has having “one of worst export rail performances for the industry”.
