South Africa holds large coal reserves, but the sector's competitiveness depends heavily on an efficient logistics network to move coal from mines to export markets.
Although rail reliability, security issues, and port constraints have posed serious challenges, recent performance improvements and stronger collaboration between stakeholders are showing positive results.
Speaking at the Coal and Energy Transition Day on July 22, Seriti Resources COO Raymond Makgota highlighted these trends. During the same session, Transnet Freight Rail (TFR) coal business unit GM Theo Johnson detailed advances on the coal corridor.
He reported a 50% year-on-year drop in security incidents and a 35% rise in locomotive availability. Over the past two years, TFR has stabilised operations, lifting volumes from 48 million tonnes to 58 million tonnes last year.
Johnson noted that while the corridor is still far from its full potential, it has clearly moved past the low point of two years ago. He added that TFR is now working on signalling upgrades on the Richards Bay side, with a maintenance shutdown under way.
The first phase of the signalling project will resume after the shutdown, and Phase B is expected in October, which should provide the necessary train slots to maximise throughput.
TFR aims to move about 62 million tonnes to the Richards Bay Coal Terminal (RBCT) this year, with targets of 65 million tonnes in 2027 and roughly 70 million tonnes by 2028-29.
"We are very much more aligned in terms of capacity of the line and the initiatives that are going in," said RBCT CEO Alan Waller, emphasising better alignment with the line's capacity.
On road freight, Road Freight Association CEO Gavin Kelly argued that trucks will remain vital, especially for moving coal from mines to railheads, particularly as mining areas shift or decline. He stressed that a symbiotic relationship between rail and road is the best way forward for the country.