Two trains collided on a vital mining-export line in South Africa, leading to the closure of the route and the need to clear the derailed trains.
- The incident further exacerbates the challenges faced by Transnet in transporting coal from Mpumalanga province to the Richards Bay Coal Terminal, resulting in decreased coal export volumes.
- The state logistics company has been dealing with various issues, including derailments, equipment shortages, vandalism, corruption, and adverse weather conditions.
- Rail inefficiencies in 2022 cost South Africa’s economy R411 billion and contributed to a decline in coal export volumes, which reached a 30-year low.
- Transnet is facing financial difficulties and recently received a R47 billion debt guarantee from the National Treasury.
- Transnet has been collaborating with the government and businesses to address the constraints and challenges, but significant improvements in operations have not yet been achieved.