New power projects funded by China are creating a growing supramax coal trade between South Africa and Pakistan.
Sajid Hussain, an executive at Pakistani trading company Agro Trade, reported that Pakistan imported 11.2 million tonnes of coal last year, up sharply from 3.42 million tonnes in 2013, according to Reuters. That is expected to increase to about 40 million tonnes by 2025, when most of the new power stations will be operational.
To feed this growing need for coal, Pakistan recently commissioned its first dedicated coal terminal at Port Qasim, which can handle vessels of up to 65,000 dwt. As a result, most of the country’s coal imports are being shipped in supramax bulkers.
According to industry data, Pakistan sources 60% of its imported coal from South Africa, with Indonesia supplying most of the rest.
Ralph Leszczynski, head of research at shipbroker Banchero Costa, described the growth of Pakistan’s coal imports as positive for supramaxes. “It proves once again that the world’s opportunities certainly do not stop at Europe and China,” he told TradeWinds.
He noted that the region as a whole, from South Asia to South East Asia, was enjoying robust growth and strong development of industry and infrastructure, resulting in increased demand for coal. Vietnam, for example, turned from being a net exporter of coal to importing 15 million tonnes last year. Thailand’s imports increased to 22 million tonnes in 2017.
“Given the relatively smaller volumes and more limited infrastructure in all these smaller countries, all this growth in demand tends to benefit supramaxes and handies more than it does larger vessels,” Leszczynski said.
