TWO trains collided on a key South Africa mining-export line, closing a route plagued by problems that have brought rail volumes at to Africa's biggest coal port to a three-decade low, reports Bloomberg.
Workers are trying to clear the trains that derailed in the incident, which occurred outside Richards Bay on the country's east coast, state logistics company Transnet said.
The disruption comes as Transnet struggles to improve its performance, particularly on the line that transports coal from mines in South Africa's Mpumalanga province to the Richards Bay Coal Terminal, the biggest facility of its kind on the continent. Volumes have dropped as the state- owned company has had to deal with
derailments, equipment shortages, vandalism, corruption and poor weather.
Rail inefficiencies in 2022cost South Africa's economy SAR411 billion (US$21.8 billion), and worsened the government's tax shortfall, according to budget data.
Companies including Thungela Resources, Glencore Plc and Exxaro Resources exported50.4 million tons of coal throughRBCT in 2022, the lowest volume in 30 years. The companies didn't respond to emailed requests for comment.
Transnet is also in financial trouble. The National Treasury last month agreed to provide a SAR47 billion debt guarantee to the company, making about half of the amount accessible to meet immediate obligations.