In Argentina, the Port of Punta Loyola has recommenced the export of coal to Brazil after a six-year closure. Yacimientos Carboníferos Río Turbio (YCRT) exported an initial 30,000-tonne consignment from what is the acknowledged logistics hub for the south of the country. A second, similar shipment is also planned, in a contract amounting to a total of 60,000 tonnes. The coal is needed for electricity generation in the neighbouring country and each shipment is estimated to make more than $2 million.
YCRT transports the coal from Río Turbio to Punta Loyola using rail. However, this has also required renovation of the port’s coal terminal to ensure loading productivity of 300 to 400 tonnes per hour, bringing back much needed skilled jobs for the local community.
South America is distinct in that while many countries throughout the globe are deactivating coal power plants, the need for coal still exists in Brazil both for electricity generation and industry in general. Concerns are therefore being raised as to how environmental factors can be balanced should this trade be re-established in the longer term, although to date the current shipments are being viewed as individual events.
Nevertheless, there is also a project to build a thermal plant in Río Turbio too, which will also make use of local coal reserves.