Supply chain issues keeping Dalrymple Bay queue high

Queensland Rail has rigorously defended itself from suggestions it is still contributing to a queue of 45 vessels at Dalrymple Bay Coal Terminal, blaming other supply chain issues for a shortage of in-bound coal to the terminal. DBCT’s owner, Babcock &#38 Brown Infrastructure (BBI), is unhappy with the implication that it is its asset that is causing the terminal to have a working queue three times higher than its preferred operating queue of 15. Lloyd’s List DCN reported in March, when the queue was 35 ships, that QR said it was meeting its contracted obligation to deliver coal at a rate of 51mtpa. Coal customers have complicated the problem by sending ships in quick succession, seemingly unperturbed by the delays of up to four weeks. But DBCT general manager Greg Smith told Lloyd’s List DCN yesterday (Monday, April 30) the port had up to 8m tonnes of excess capacity. The coal had arrived at the terminal at a rate of 51mtpa so far in 2007. &#8220It’s upstream and it’s in the supply chain and we haven’t heard of any mines that are experiencing production problems so I can only assume there that we have rail operational issues,&#8221 Mr Smith said. &#8220The issue as we see it is the inability of the supply chain to deliver the contracted quantities to the terminal.&#8221 In an email statement, QR said that all the coal supply chain parties were working on investing to meet unprecedented demand. &#8220Many of the current frustrations&#8224will be eased when further&#8224rail track, locomotive and wagon investments and the expansion of the DBCT capacity,&#8224come online in early 2008,&#8221 QR said. But BBI refutes the implication that any extra port capacity would solve the problem. Mr Smith said DBCT would not have a queue if coal was delivered at 59mtpa. &#8220BBI is extremely disturbed that we’ve got an increase in queue to 45 ships off the coast and we’re still not receiving more than 51m tonnes at the gate,&#8221 Mr Smith said. &#8220What we can’t understand is if we’ve got port contracts for 59m tonnes and the terminal capacity of 59m tonnes and rail contracts of 59m tonnes and we think all the mines are producing, then why aren’t we getting 59m tonnes delivered to the gate if QR can haul everything that’s thrown at them?&#8221 Lloyd’s List DCN asked QR to clarify the volumes and to provide detailed numbers about its deliveries to the port, but was told that they would not be made available. QR did not answer questions relating to how it was performing against its contracted targets for 2007, but said it was achieving strong rail haulage volumes. &#8220QR is working with our supply chain partners to maximise use of the current assets in the system,&#8221 QR said. &#8220This is bearing fruit, with three of the last four weeks seeing&#8224record or close to record tonnage railed in the Goonyella system. &#8220The coal boom has put pressure on all of the&#8224Queensland coal systems and supply chain partners to&#8224move tonnes. &#8220As the rail partner in the supply chain, QR has a key role to play and is committed to maximising tonnage hauled in the short term as well as ensuring sustainable rail capacity for the longer term.&#8221

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