Commodity boom remains untapped as SA fights rail woes

SOUTH Africa is missing out on some of the riches on offer from the commodities boom as a rail network beset by problems hobbles its exports.

While coal prices recently soared to a record and iron ore is historically high, miners are being forced to stockpile supplies as state-owned Transnet’s rail network buckles under issues from cable theft to breakdowns, compounded by years of corruption.

Transnet’s lines are critical for moving bulk commodities – which have rallied further amid the war in Ukraine – from mines to ports.

As lost earnings mount for miners, executives are becoming more frustrated by rail failures. It’s become such a headache that South Africa’s top thermal coal shipper, Thungela Resources, is weighing buying overseas assets to limit its local exposure.

“South Africa is losing money, we are losing money as an industry and we as a company are losing money,” Thungela Chief Executive Officer