transport logistic services

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Mining operations are looking for side tippers in order to transport either coal or mineral ores. Various contracts are open for the side tippers required and new opportunities come up on a regular basis. In case you have a company that owns side tippers and would like to put them under contract, please contact us with your company profile and a soft offer.
You can reach us via email at: torsten@commoditytrading.co.za

Coal in Demand Like Never Before
Despite concerns over carbon emissions, coal has recently started a renaissance. It is considered a major fuel for power generation and has large, untapped global reserves.

The carbon market is now global, despite large reserves more closely than ever before, and the price of raw material high. Two important factors signal a continuation of this trend: first, the sharp rise in coal consumption, especially in China and India, and secondly, infrastructure problems in key producing countries. The main reason for the structural tightness in the coal market is continually rising energy demand that is met increasingly from coal power plants. The International Energy Agency (IEA) forecast in its World Energy Outlook 2007, that coal will experience under all primary energy sources the most significant increase in demand.

Asia’s energy demand rises sharply
The strong economic growth, industrialization and urbanization, together with a higher standard of living are driving demand for energy in India and China into the air. Under the baseline scenario of the IEA in 2030 will account for around 60 percent of global coal demand in China and India – on the basis of 45 percent in 2005. To meet the significant growing demand for energy, China has to rely increasingly on coal imports, especially as we have in our own country to cope with major challenges on the supply side. Thus, coal production is increasingly concentrated on the mining areas in the north, which lie in a clear distance of the major consuming regions to the south coast. Innovative coal tranport contracts do become of interes here. The increased demand for transport bottlenecks on the rail and ports, which results in addition to a limitation of the internal supply and an increase in the cost of domestic transport. As a result, the attractiveness of imported coal. China was already the beginning of 2007 a net importer of coal, while the country is traditionally one of the main exporters of coal was transported by sea.

India relies on coal imports
The energy demand in India, according to the IEA in the period 2000-2005 increased by around 3.2 percent. Here, the per capita consumption are equivalent to one-tenth of the OECD contracts average and is therefore still extremely low. India also is designed to meet their energy needs increasingly dependent on imports. This is particularly true for coal, as the Indian economy is highly dependent on this energy source – 2005 39 percent of total primary energy demand was attributable to coal. The Indian production is sufficient quantity and quality are not sufficient to meet domestic demand, so the import has increased significantly in recent years. India does have large coal reserves. However, these have usually have a high ash content, so imported coal to be added to reduce the contaminants.

Australia is a large coal supplier in the business
While these facts support the supply side, prices in the long run, is the recent strong rise in coal prices due to a number of short supply outages in China, Australia and South Africa. The three most important events in early 2008 were floods and rains in Australia, which led to export disruptions, loss of production in South Africa and heavy snow storms in China, which also attracted to the export bottlenecks. These short-term supply failures are all symptoms of inadequate infrastructure for coal transportation, and it will take years to remedy this serious deficiency. Australia is one of around 112 million metric tons (mt) of the largest coal exporters. Given strong increases in coal transport export volumes, the capacity limit of the Australian coal transport system is almost reached. The infrastructure for transporting coal from the Hunter Valley mining area is likely to remain inadequate until at least 2010, because only then will the port of Newcastle completed a third coal terminal.

Transport bottlenecks resolve
Even South Africa can not operate because of the limited capacity of rail and ship transport, the growing global coal demand is sufficient. Capacity constraints in the coal terminal at Richard’s Bay should have caused a slight decline in exports in 2007 to 67.2 million MT. From the end of 2009 should see some recovery use when another expansion project will be completed. As Australia and South Africa export its short notice but can not increase greatly, the increase in coal demand met by increasing production from Indonesia, the United States and Russia. This should be sufficient but not enough to keep up with the demand growth. Coal will play in our view, an important role in helping to meet the increasing global demand for energy. A major challenge, however, is to reduce the use of greenhouse gases and other emissions through technological innovations, such as clean coal and zero emission technologies.