Thungela Resources, a South African thermal coal exporter, predicts a rebound in coal shipments next year as rail bottlenecks ease, according to CEO July Ndlovu on Monday.
In 2023, South Africa’s coal exports dropped to a three-decade low of about 47 million tons annually due to issues with state-owned Transnet’s rail and port infrastructure, including locomotives and vandalism.
Ndlovu anticipates shipments could rise to over 50 million tons per year starting in 2025, a recovery from past low levels.
Transnet’s rail unit handled 76.47 million tons in 2017.
Ndlovu expressed optimism, stating, “The worst is probably behind us,” noting that improvements are expected with the current building blocks in place.
The rail crisis has affected Thungela and other companies like Exxaro Resources, forcing them to use alternative transport methods.
Thungela’s profit fell 61% in the first half of the year, but improvements could boost shipments to over 12.5 million tons next year.