It is reported that the United States is poised to export the most coal since 1992 this year filling a gap created when flooding interrupted Australian supplies and buoying shipments for railroads such as Union Pacific and Jacksonville based CSX.
Mr Doug Glass the company VP said Union Pacific of Omaha, Neb, the nation largest railroad may double coal exports this year to more than 4 million tons. CSX predicts shipments may rise 33% to a record in 2011 after first-quarter volumes climbed 45%.
Mr Glass said "It''s pretty exciting. After the recession reduced demand for coal which accounts for 21% of Union Pacific sales and we''re starting to see renewed interest in that coal and we''re encouraged because we''ve got the capacity to meet the demand."
The company has invested more than USD 90 million in expanding its Colorado and Utah coal business and its peers are making track improvements and adding equipment to take advantage of demand growth. Norfolk Southern Corp, the fourth-biggest US railroad, has said it will buy 1,500 coal cars this year.
According to government figures nationwide, coal exports may gain 20% in 2011 after quarterly volumes rose to the highest in about 19 years in the three months through March.
The Energy Information Administration said coal shipments from the US are poised to rise to about 98 million tons in 2011. The exports increased 49% to 26.6 million tons in the first quarter alone.
Steelmakers in Asia and South America are driving demand for metallurgical coal, a crucial production ingredient while shipments of thermal coal for power plants have been boosted by reduced supplies from Australia Queensland state and the idling of some atomic plants after Japan nuclear crisis.
( Source: www.steelguru.com )