To: Wharf Rat who wrote (4874 ) 10/17/2006 11:06:05 AM From: Wharf Rat Read Replies (1) | Respond to of 24231 17 Oct 2006 : Coal shortages hit Western Cape INDUSTRY in the Western Cape is struggling to obtain sufficient supplies of coal and coal merchants have had to resort to road transport to bring coal to the Province in order to keep major industries like the brick fields going. The brick-makers and cement works (which are supplied directly by the mines) play a critical role in the construction industry and major infrastructural projects could be affected unless the situation improves soon. Coal merchants and major users are so concerned that they are forming a task group to make a direct approach to the Government about the situation. The Cape Town Regional Chamber of Commerce and Industry says the core problem appears to be a lack of rail transport capacity. One large coal merchant told the Chamber that he normally received four trainloads of coal each week but he now had to manage with two in a good week. The rest had to come by road. Another coal merchant said his normal supply was one train a week but it had been four weeks since his last train arrived. He, too, had to resort to road haulage and said this pushed up transport costs by a considerable amount. Mr Albert Schuitmaker, Director of the Chamber, said the coal crisis created a secondary problem on the roads. "Coal is heavy cargo and should not be moved by road. That damage that this is doing to a road system that is already under pressure is a very serious matter indeed." Coal merchants say the problem is a national one but the Western Cape is furthest from the coal fields and it is being felt most acutely in this part of the country. The industries affected include brick-making, cement, steel, cotton, paper, wine and fruit and fish caning. Behind the crisis is the surging demand for exports, particularly from China. According to Engineering News, coal exports through Richards Bay increased by 23 percent to 7.17 million metric tons in September. Exports through Mozambique doubled to 94 084 metric tons. September was an exceptional month and may not reflect an annualised picture but it is an indication of the demand for coal and the growing need for rolling stock and locomotives to get the coal to the coast. The coal crisis comes in the wake of the recent blackouts as well as diesel and gas shortages. Taken together it appears that the Western Cape is facing an energy crisis. A further problem is concern about the quality of the coal. An engineer from a cotton milling company told the Chamber that the poor quality was affecting efficiency and causing foul-ups in the coal-handling equipment. His company used 700 tons a month and would come to a standstill if they were unable to obtain supplies. cbn.co.za