China is set to boost rail freight capacity by 200 million tonnes at minimum, at least 150 million tonnes of which will be allotted to thermal coal, as the country moves to shift commodity transport away from roads as part of its pollution reduction strategy, Reuters reported Jan. 31.
The government is working with the national rail operator to secure coal supply amid an increase in demand for power, the report said, citing the deputy head of the National Development and Reform Commission, Lian Weiliang. "The railway departments will prioritize coal to guarantee that supplies are within the safe range," Lian said.
Inclement weather has delayed thermal coal deliveries and driven prices to record highs in China as the country endures its worst blizzards of this winter. The lack of transport options due to the adverse weather conditions has caused coal to pile up in mines and in the ports, raising concerns over heating and power supply.
The week of Jan. 22 saw four of the country's top utilities warn of heating and electricity shortages due to a dearth in coal supply ahead of and during the Lunar New Year holiday.
