Tangshan coke, coal trucking fee up via containers
Coal and coke transportation costs have been rising by as much as 100% since Tangshan in North China’s Hebei province has requested thermal coal, metallurgical coal and coke to be trucked from ports in containers instead of open space since late July so as to reduce dust emission, market sources confirmed on August 14.
The latest requirement on storing coal and coke in containers have prompted some truckers to hike their charges for coal transportation from ports of Caofeidian and Jingtang under the administration of Tangshan city government to steel mill and coking plants by 50-100%, and a Tangshan-based coke producer disclosed that they are now paying Yuan 70/t ($10.2/t) for coal delivery, or 75% higher than prior to late July.
“Truckers used to carry the coal in the unlidded carrier, covering the cargoes only with the shed cloth to minimize dust emission during transportation,” a Shanghai-based analyst explained, adding trucking by container is eco-friendlier, but it is undoubtedly costlier.
A heavy-duty truck can usually carry a 55-tonne container, the same with previous limit of six-axle truck, but it has eliminated any chances of overloading, as it has been frequently seen on the road in China that many trucks more than double their load limit to as much as 80 tonnes by illegally adding additional blocks, Mysteel understands.
Tangshan ports implemented the new measure quietly in late July without any official announcement, and there is no mentioning whether or when the measure will expire, but it falls into the city government’s agenda to improve the local air quality, and more truckers, on the urge of their respective district authorities, have been shifting towards coal and coal transportation via containers, a market watcher familiar with this matter confirmed.
Jingtang port at Tangshan is the largest coking coal handling port among Mysteel’s survey on five major Chinese coking coal ports, with the others being Qingdao, Rizhao and Lianyungang in East China, and Zhanjiang in South China.
Other than higher charges, the adoption of containers in coal and coke transportation may reduce the daily coal handling volume by 80,000-100,000 tonnes/day, while coke is hardly affected much, as Tangshan is not a major handling point for coke, Mysteel understands.
As of now, only coal and coke transportation has been requested to do so, as the dust emission is more serious compared with iron ore and steel.
“Tangshan’s move is also in accordance with Hebei provincial government’s efforts in improving air quality and encouraging steel plants to shift to rail from road transportation for its raw materials discharges from ports,” a second Shanghai-based analyst said.
The road-to-rail shift for coal transportation is requested to achieve by the end of 2018 at all the ports in Hebei, market sources confirmed.
Written by Sean Xie, xiepy@mysteel.com
Edited by Hongmei Li, li.hongmei@mysteel.com
CNCA: China’s coal consumption cap at 4.2 bln t by 2025
Aug 04, 2020 11:30
BLOG: Dongjiakou port targets dust-free ore handling
Sep 30, 2019 16:00
CONF: Transportation reform affecting CN coal industry
Aug 24, 2018 16:00
CONF: Weaker macro economy to pressure ferrous prices
Aug 24, 2018 14:00
CONF: Future coke price trend depends on eco-policies
Aug 22, 2018 16:30