Consol Energy has access to more than 20 million st of export coal capacity at US terminals this year, giving it what company executives say is ample capacity to help meet growing coal demand in China, India and Europe.
The Appalachian coal producer continues to consider expansions at its Baltimore coal terminal, which the company said Thursday is on pace to handle 14 million st in 2011, and has export options at two other terminals along the US East Coast.
Consol "will not be constrained" by port capacity, CEO J. Brett Harvey said during a call with analysts to discuss the Pittsburgh-based company's fourth-quarter financial results.
But "in order to increase the volumes, we need the help of both eastern railroads because we can produce it and we can put it through the ports, but we have to get it there," Harvey said. Coal producers and railroad have been at odds over whether there is sufficient capacity.
Harvey told analysts he believes US ports could handle between 90 and 95 million st in 2011, up from just over 80 million st in 2010. Total port capacity could be closer to 110 million st, Harvey said.
In addition to its own facilities in Baltimore, Consol can use up to 3 million st of throughput at CSX's Chesapeake Bay terminal. It also has access to as much as 6 million st of capacity at Norfolk Southern's Pier 6 in Norfolk, Virginia.
Norfolk Southern has said its its terminal is capable of handling 30 million st of coal this year with few changes to its current operations, twice the 15.6 million st shipped in 2010. Consol's Baltimore terminal, the second largest by volume on the East Coast, has squeezed out efficiencies that continue increasing its capacity.
""We're on a record pace for January," Harvey said. "If we keep up that pace, we'll hit 14 million st."
