Power failure paralyses Richards Bay Coal Terminal

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03-02-2014
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Moneyweb
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Electricity may be restored by Wednesday.

The Umhlathuze Local Municipality in Richards Bay has asked for national government intervention after a power failure has paralysed the Richards Bay Coal Terminal (RBCT) since Friday.

The RBCT is the single largest export coal terminal in the world. In December alone it handled 6,7 million tonnes of exports and 5,5 million tonnes of imports.

During that month 692 trains and 62 vessels carried loads to and from the terminal.

RBCT spokesperson Alan Waller confirmed to Moneyweb this morning that the power may only be restored later this week. He said a statement would be forthcoming later today.

A spokesperson at the Chamber of Mines said more than 80% of the coal exports are destined for Asia and South Africa’s reputation as an exporter may suffer serious harm. He said the monetary loss is difficult to calculate, but would run into billions of rand.

“You cannot offload coal from the trains and cannot get the coal onto the stockpiles. Coal mines’ only have limited storage facilities,” and need to get the coal off-site, he said. Their sales may be affected if the situation continues. He says even if power is restored, it will be difficult to clear the backlog. “It is all about availability of ships and trains. It is long supply chain.”

The municipality earlier issued a statement confirming the cable failure “to the port area (RBCT, Engen, IVS and Coalink)”.

It said it is dealing with the situation and electricity should be restored by Wednesday morning.

“As a long term solution, a plan is underway to get newer technology to mitigate this risk in the future.

“Politicians in the region and the Municipality are managing the matter. We are in touch with our National Government for an urgent intervention. The municipality takes this matter very seriously as it affects the economy of the country as far away as Mpumalanga”, it said in a statement.