Rail weak link in Solid Energy coal export goal

State-owned coal producer Solid Energy is on track to export 2.5 million tonnes of coal this year but rail remains its biggest hurdle in hitting its five-year target of four million tonnes a year.

The company exported 2.13 million tonnes in the year to June 30, 2003.

Chief executive Don Elder said the need for raw materials and steel in China was pushing up international demand for New Zealand's coal.

Dr Elder said the recently completed $30 million upgrade of Lyttelton Port Company's coal-handling facilities was a step towards meeting the goal.

Remaining challenges in reaching its export target were being addressed, in particular working with Tranz Rail to develop the reliability of and upgrade capacity on the Midland Line between the West Coast and Lyttelton.

"Lyttelton has been a bottleneck and will continue to be a bottleneck due to the small [physical] area they have," he said.

However, the port's upgraded facilities would mean coal could move to a ship faster, minimising the amount of time coal was piled up at the port.

- NZPA