China’s Datong to move coal traffic to Caofeidian

摘要

China’s state-controlled coal producer Datong plans to shift its coal shipments from Qinhuangdao port to Caofeidian, in response to Hebei province's plans to alter the role of Qinhuang- dao port. This could potentially raise transportation costs for the producer. Shanxi-based Datong has signed an agreement with the government of Caofeidian district in Hebei province to use Caofeidian as the main transshipment port for loading its coal product on vessels. It will gradually increase the amount of coal it delivers by rail to Caofeidian and reduce the coal shipped to Qinhuangdao, bringing up the volume to Caofeidian to at least 40mn metric tonnes in 2019. This should increase by 10mn t each year from 2020. Datong will eventually completely shift coal deliveries to Caofeidian from Qinhuangdao.