South Africa's Coal Boom: Increased Exports Amid Rail Improvements

Coal exports from South Africa's Richards Bay Coal Terminal increased by 11% in 2025, reaching 57.66 million metric tons. Despite challenges with freight rail shortages and infrastructure issues, improvements have been reported since late 2024. Asia remains the top destination, but shipments to Europe and the Middle East are rising.

Coal exports from Richards Bay Coal Terminal in South Africa surged by 11% in 2025, amounting to 57.66 million metric tons, marking the highest volume in four years. This surge is credited to an improvement in freight rail performance, which had previously been hindered by infrastructure challenges.

Despite these gains, exports are still below the 76 million tons reached in 2017, mainly due to capacity issues faced by Transnet, the state-owned entity responsible for transporting goods to export markets. Transnet has been grappling with a shortage of locomotives and theft incidents, forcing some exporters to rely on trucking or alternative routes via Mozambique.

Asia remains the largest market for South African coal, although its share slightly dropped to 79.8% in 2025. Significant increases were observed in coal shipments to the Middle East and Europe, particularly to countries like Israel and the Netherlands, signaling diversification in South Africa's export destinations.