---
title: "Richards Bay Coal Terminal lifts European sales despite disruptions"
description: "The Richards Bay Coal Terminal, the continent’s biggest export facility for the fuel, increased shipments to Europe last year to meet increasing demand even as the project struggled with infrastructure disruptions."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "South Africa"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-01-27-richards-bay-coal-terminal-lifts-european-sales-despite-disruptions/"
published: "2023-01-27T07:35:34"
lang: "en-ZA"
word_count: 244
---

# Richards Bay Coal Terminal lifts European sales despite disruptions

> The Richards Bay Coal Terminal, the continent’s biggest export facility for the fuel, increased shipments to Europe last year to meet increasing demand even as the project struggled with infrastructure disruptions.

By Bloomberg · Published 27 January 2023, 09:35 SAST

## Key points
- Richards Bay Coal Terminal in South Africa saw a 28% increase in exports to Europe due to the continent's renewed appetite for energy supplies. Despite security issues, a wage strike and equipment shortages hampering operations, the terminal managed to send over 14 million tons of coal to Europe - the highest since 1992. To reach its target of 60 million tons this year, better security and rail scheduling strategy is needed. Thungela Resources had to lower its export guidance as prices soared, while other producers resorted to trucking and exporting from alternative ports. The industry still faces challenges but is showing signs of recovery.
- Europe’s renewed appetite for coal saw South African exports surge 28% in 2022
- Transnet declared force majeure on its main coal export line due to train derailment and violence
- Security issues, wage strike and equipment shortages hampered Richards Bay's shipments
- Thungela Resources lowered export guidance as prices of the fuel soared to records

## Content

Security issues, a wage strike and equipment shortages for state-owned rail operator Transnet cut coal deliveries from mines to the port, contributing to overall exports from Richards Bay declining 14% to 50.4 million tons in 2022, the lowest in about three decades. Still, the logistics challenges proved to be no match against Europe’s demand for energy supplies.

Shortly after Russia’s invasion of Ukraine in late February, traffic on the previously infrequent trade route for coal shipments from South Africa began to [increase](https://www.bloomberg.com/news/articles/2022-03-04/europe-s-renewed-appetite-for-coal-draws-south-african-shipments). Richards Bay ended up sending over 14 million tons to the continent in 2022, accounting for over 28% of total shipments, CEO Alan Waller said in a presentation on Thursday. Europe only accounted for 4% of the exports in the previous year.

But the overall industry continues to be hamstrung in South Africa. Transnet last year declared force majeure on its main coal export line after a train derailment and violence that [delayed](https://www.bloomberg.com/news/articles/2022-11-25/south-africa-s-transnet-lifts-force-majeure-on-coal-export-line) recovery operations. Richards Bay lost 22 days of shipments due to the wage strike and the train accident, according to Waller. Better security and rail scheduling strategy could help it reach a target of 60 million tons this year, he said.

Thungela Resources, South Africa’s largest exporter of power-station coal, [lowered](https://www.bloomberg.com/news/articles/2022-08-15/anglo-coal-spinoff-cuts-outlook-as-rail-disruption-curbs-exports) its export guidance as prices of the fuel soared to records. The constraints have forced producers including Exxaro Resources to truck and export coal through alternative ports. Glencore and Sasol are also shareholders in the terminal. **BM/DM**