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Steam coal supply concerns ease in Germany
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Sunday, 29 May 2011
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Concerns about coal supply to Germany, due to low river levels, are gradually easing on Wednesday, with rainfall expected in the coming days and increased rail capacity becoming available. Although water levels on sections of the river Rhine a key coal transport route are still more than 50% below normal levels, rain is expected across Germany over the next two days.

Spokesman Mr Dominik Zehatschek from German utility Eon told Montel that “There has been no impact [from the low river levels] and there is no expected impact on our coal supply adding the firm had no problems in securing rail wagons as an alternative means of delivery.

Meanwhile, DB Schenker the freight logistics subsidiary of German national rail company Deutsche Bahn confirmed that rail freight capacity was sufficient to meet any extra utility demand.

DB Schenker spokesman Mr Marek Polster said that “We have a slight increase in demand for the transport of dry bulk, due to the low river levels, but we are not operating at full capacity.”

And as concerns about river supply soften, players are turning their attentions elsewhere. One Geneva based trading firm said that “I heard water levels are getting back to normal quickly, hence it should not be an issue anymore.”

(Sourced from Montel)

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