South African state-owned logistics Transnet's freight division, Transnet Freight Rail (TFR), railed 35.4 million mt of export coal in the April-September period, falling 3% on the year, as mines reduced demand for trains, it said in its results for the six months ended September 30.
Transnet said it had felt "the full impact of muted global economic activity on several of its lines, including export coal."
It said to mitigate declining volumes on revenue, TFR had prioritized high-yield commodities, such as export iron ore, of which volumes rose 7.5% year on year to 30 million mt for the period.
During the half-year period, Transnet continued with its Rand 16.1 billion ($1.17 billion) Market Demand Strategy, or infrastructure investment program, with 66 electric locomotives added to the coal line during the period.
The group said it had invested Rand 212 million on the ongoing expansion of the coal line, which included upgrading yards, lines and electrical equipment.
Transnet is upgrading the coal line by adding 10 million mt of capacity over the next seven years to be able to transport 81 million mt/year of coal.
