Published: 2009/12/15 06:58:50 AM
ARTWELL DLAMINI
RICHARDS Bay Coal Terminal , the world’s largest single coal- export terminal, announced yesterday it had again missed the deadline for the completion of its expansion plan.
CEO Raymond Chirwa said the R1,2bn Phase V expansion would now be finished in April, indicating that the delay was due to “challenges” posed by the new computerised control system.
He also blamed Transnet Freight Rail for the delay , due to its “nonperformance in meeting our rail capacity requirements” .
As a result , the main shareholders of the terminal, including Anglo American, BHP Billiton and Xstrata, have had to curtail their exports in order to leave some capacity for emerging black economic empowerment exporters.
The Phase V expansion seeks to cater, among other things, for empowerment coal exporters. About 9-million tons a year are being offered to other shareholders, nine new players and commercial users with black economic empowerment priority.
“The Phase V project has delivered on everything except for the new terminal control system with which we have had challenges. We are working on systems integration, which admittedly is taking time,” Chirwa said.
The delay, ending weeks of speculation , marks the third time this year that the commissioning date of the project, aimed at boosting the terminal’s coal-export capacity to 91-million tons a year from 72-million tons, has been pulled back. The commissioning of the project hit a snag in February and another in July .
“I commend the existing shareholders for walking the talk,” Chirwa said. “They have curtailed their export capacity (for the sake of) the new entrants, a bold, magnanimous and commendable step that accentuates their commitment to the transformation agenda and the success of a workable venture.”
Chirwa said all new approved Phase V users would be accommodated within the current terminal capacity until critical business challenges were met.
By the end of this year, the new entrants would have concluded their contracts in order to start exporting early next year, he said. “In 2004, less than 1% of the terminal was black-owned. This will rise to more than 30% when the terminal reaches a capacity of 91- million tons,” Chirwa said.
Mbokondo, Umcebo, Exxaro and South African Coal Mining Holdings had concluded agreements and were ready to rail coal, while the Worldwide Coal Carolina, Mmakau, Arm Coal, Tumelo and South Dunes Coal Terminal deals were in the “final stages”.
“It is my belief the remaining agreements will be concluded before the end of December so that all new exporters will join the existing shareholders in exporting coal as early as January .”
artwelld@bdfm.co.za
Source: http://www.businessday.co.za/articles/Content.aspx?id=89628
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