On the back of a drastic decline in coal market conditions in the latter part of 2015 and early 2016, the wheel seems to be turning for Grindrod Terminals with new coal contracts being signed, and increased magnetite volumes being realised to its coal terminal in Matola – Terminal de Carvão da Matola (TCM).
From zero coal volumes railed to TCM in January, tonnages slowly ticked up in April with a significant improvement in July on the back of the first coal contract becoming operational. Two more coal contracts commenced delivery in August and a fourth in September, resulting in coal tonnages increasing to 2.8 million tonnes per annum (annualised).
Magnetite volumes railed to TCM have more than doubled since January; this on the back of the renewal of the Palaborwa Mining Company (PMC) contract.
The combined tonnage of coal and magnetite railed to TCM in October was a record 528,270 tonnes for the month which equates to a tempo of 6.4 million tonnes annualised.
TCM estimates that they will complete 2016 with total exports of 3.8 million tonnes, indicating that they will be well placed to surpass their previous record of 4.1mtpa (achieved in 2015) during the 2017 calendar year.
As a key stakeholder on the Maputo corridor, Transnet Freight Rail has been instrumental in ensuring that this corridor is adequately resourced to deliver the contracted tonnages and continue to grow from strength to strength.