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Coal shortage blamed on transport

(China Daily)
Updated: 2010-01-20 07:41

Many power plants in Shanxi province are facing a shortage of coal, forcing at least one of them to buy it from other provinces to generate enough electricity to meet public demand. The main reason for this state of affairs is the lack of coordination among coal mines, the railways and power plants, says an article in Security Times. Excerpts:

Shanxi is facing an unusual problem. The power plants in the coal-rich province don't have enough coal, compelling several of them to set limits for electricity generation. One of the power plants has even sought coal from southern provinces.

Experts have cited many reasons for the situation, with most blaming low efficiency and high cost of transportation for the crisis. Coal has been the most important fuel for our national power plants for a long time, and it will remain so for some time to come. So the problems in transporting coal will not only hinder economic development, but also cast a shadow on the future of society.

The railways' monopoly in transporting coal and its inferior capability to do so are the two main reasons for the high cost of coal. According to investigation, transportation makes up more than half of the cost of coal. But the development of coal transportation has not kept pace with the demands of the changing times. Besides, coal and electricity markets are divided into many small segments, and the power plants have to pay extra charges to many administrative divisions, making electricity all the more costlier.

To solve this problem, more coordination among the coal mines, railways and the power plants is needed. Only if the transportation capability and efficiency are improved can the power plants meet the needs of the entire society.

(China Daily 01/20/2010 page9)