Coal Industry Warns Transnet Is At Risk of Becoming the Next Eskom

LOCAL NEWS

• Industry warns that Transnet (state rail company) is at risk of becoming the next Eskom, is throttling investment and could cause difficulties and closures at various mines. Coal producers at the Richards Bay Coal Terminal voiced their concerns yesterday, saying that the company was in free fall.
  • Transnet was capable of moving 56 million tons of coal to the Richards Bay Coal Terminal, however, only 49 million tons is currently predicted to reach the terminal this year – Fin24
• Political analyst warns of major union strike action over the 10% wage demands (CPI = ~5.9%) tabled this week alongside a R2500 increase in housing allowance worth R66.5bn.
  • Notes that Govt has allocated 1.8% in the Feb budget (R20bn) and the sides are miles apart and likely to butt heads over the discrepancy with Govt pushing to keep the wage bill from seeing a real increase over the next three years. This saga is being closely watched by credit rating agencies.
• Provisional reports suggest that KZN road infrastructure repairs will cost R6bn. The department’s budget for repairs in R12.4bn but experts believe additional funding is needed with costs likely to be around R17bn - EWN