Transnet Trains Collide Shutting South Africa's Coal Export Line ...

Paul Burkhardt, Bloomberg News

A logo on the exterior of a trolley train at the Transnet SOC Ltd. Sentrarand depot, in the Benoni district of Gauteng, South Africa, on Friday, Nov. 17, 2023. Volumes of goods and commodities, including iron ore and coal shipped through the Transnet’s freight rail network for export, have dropped because of issues including vandalism, idle locomotives and cable theft. Photographer: Guillem Sartorio/Bloomberg , Bloomberg

(Bloomberg) -- Trains on South Africa’s main coal export line collided early on Jan. 14, shutting the route that’s been plagued with issues, according to state logistics company Transnet SOC Ltd.

Workers are trying to clear the two trains that were derailed in the incident that occurred outside Richards Bay, Transnet said in a statement on Monday. No serious injuries have been reported and the accident is under investigation.

The disruption comes as Transnet struggles to improve its performance, particularly on the line that transports coal from mines in Mpumalanga to the Richards Bay Coal Terminal, the biggest facility of its kind on the continent. Volumes have dropped as the state-owned company mitigates derailments, equipment shortages, vandalism, corruption and poor weather.

Companies including Thungela Resources Ltd., Glencore Plc and Sasol Ltd. exported 50.4 million tons of coal through RBCT in 2022, the lowest volume in three decades.

Transnet is also in financial trouble. Treasury agreed to provide a 47-billion rand ($2.5 billion) support package to the company, making about half of the amount accessible to meet immediate debt obligations.

Rea More: Transnet Bond Jumps by Record on $2.5-Billion S. African Aid (1)

©2024 Bloomberg L.P.