Australia, one of the world's top three steam coal and coking coal exporters, has faced growing logistical problems due to lack of rail and port capacity, Reuters reported.
"If Rey gets their act together they will control the entire eastern seaboard able to service India and China without delay".
NEWCASTLE
The world's busiest coal terminal, Newcastle, has suffered vessel queues for several years. Over 40 ships were queueing in early September. Coal exporters said they are to bring back a quota arrangement to ration exports from Newcastle but will continue working on a long-term fix to boost port capacity and efficiency.
The port operator Port Watarah Coal Services and the Newcastle Coal Industry Group will phase in a new plan next year whereby miners will sign 10-year contracts based on forecast volumes. The new system is intended to prevent producers from booking more capacity than they need which leads to shipping logjams by forcing them to pay for unused capacity.
DALRYMPLE BAY
Australia's coking coal export terminal in northeast Queensland is expected to see long vessel queues until mid-2010 because there is insufficient rail capacity to meet export demand, exporters and coal traders said. Queues have been as high as 76 vessels waiting in November 2009. Pacific National and state-owned Queensland Rail are spending heavily to provide more trains and upgrade the rail yard.
GLADSTONE
Australia's third-largest coal terminal also suffers vessel delays but not to the extent of Dalrymple Bay. Gladstone is used by BHP Billiton Ltd (BLT.L), Rio Tinto Ltd (RIO.L), Wesfarmers Ltd (WES.AX) and Peabody Energy (BTU.N).
BALACLAVA ISLAND NEW PORT
Xstrata Plc (XTA.L), the world's largest steam coal exporter, has announced plans to build a A$1 billion coal port at Balaclava Island in Queensland to help alleviate congestion at the other Queensland ports. Xstrata will begin building in 2012 and to start exports from its expanding Rollestone and Oaky Creek mines in 2014.
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