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Richards Bay, rail expansion will boost exports: coal is one of the main pillars of South Africa's export strategy but limited capacity at the Richards Bay Coal Terminal has placed an artificial cap on production expansion. Neil Ford reports on plans to increase capacity at the port and to improve the country's rail infrastructure.

Article Excerpt
The long-term prospects for the South African economy are better now than for many years. Industrial production is rising by 5.4% a year, inflation has been brought down to below 6% and annual economic growth stands at 4.5%.

Although it is by no means guaranteed, the Holy Grail of long-term sustainable growth in excess of 5% has become a distinct possibility. Much has been made of increased tourist revenues, the expansion of the automotive sector and wider economic diversification but one element is often overlooked: the export of raw materials.

South Africa has long relied upon the export of iron ore and particularly coal to generate much of its export revenues. With many forms of trade curtailed during the apartheid era, it was natural that the country would focus on exploiting its raw materials. As a result, many now regard the mining sectors as part of 'old South Africa', yet the truth is that mining is likely to remain a key engine of growth for the foreseeable future.

The country possesses the world's sixth largest recoverable coal reserves at 53.7bn tonnes but coal is even more important in terms of exports. Around a third of total national coal production of 264m tonnes is shipped overseas.

The lion's share of the country's coal deposits lie in Mpumalanga Province and as a result of the...