RAIL RESTRICTED--South African coal exports expected to rise in 2009, but rail will determine by how much

摘要

South Africa has an expanding coal-export terminal, but an uncertain rail capacity. The mismatch is something South Africa cannot afford, given its current-account deficit and the need to export optimally. Last year, South Africa's coal exports were way below port capacity, reflecting a lost export opportunity. While coal exports are expected to rise this year, if an increase eventuates, rail will determine its extent. South Africa burns its low-grade coal to generate electricity and exports its high-grade coal very lucratively.