THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Monday, January 22, 1996 TAG: 9601200197
SECTION: BUSINESS WEEKLY PAGE: 22 EDITION: FINAL
SOURCE: BY JOSH MARTIN, JOURNAL OF COMMERCE
LENGTH: Medium: 62 lines
Growing demand for U.S. coal in overseas markets is producing changes in shipping patterns and volumes at ports around the United States.
Norfolk continues to be by far the nation's largest coal-exporting port, handling almost half the nation's total export volume last year.
But recent figures also show increasing volumes at Great Lakes and West Coast ports. North Atlantic customs districts, including the one covering Norfolk, reported export growth rates of 28 percent in 1995, while those in the South Atlantic and Gulf reported volumes up 20 percent in 1995. Volume was up 35 percent at customs districts along the Canadian border, including Cleveland and Detroit, while Western ports came in with 52 percent growth during the same period.
Some of the more significant export growth figures reflect the development of new coal mines in the West, as well as changes in global demand.
These increases mark a clear reversal of the decline in coal exports seen in the early 1990s, which was largely attributed to low oil prices. The U.S. Department of Energy's long-term forecast calls for coal exports to rise from 75 million short tons in the base year 1993 to more than 115 million tons by 2010.
The greatest growth, both in percentage and tonnage, will be seen in exports to Europe; annual exports there are expected to rise from the current 38 million short tons to 70 million short tons by 2010. Ports and transportation companies are responding. In Baltimore, Los Angeles, and other ports, new coal facilities are being built or planned to facilitate the expected rise in exports.
Analysts believe there could be significant competition among ports in the same geographic regions, with Mobile challenging New Orleans, Baltimore vying with Norfolk, and Detroit competing with Cleveland.
Baltimore port officials point out that with three privately owned export coal facilities, it now has over 39 million tons of annual export capacity, a capability only exceeded nationally by its regional rival, Norfolk.
``We're definitely on a growth cycle,'' said Lou LoBianco, manager of breakbulk, bulk and carrier sales at the Maryland Port Administration, which oversees the Port of Baltimore.
Port officials say Baltimore handled some 13 million tons of export coal last year, up from 8.4 million tons in 1994. Some 177 coal-carrying vessels called at the port in 1995, up from 124 the year before.
The increased traffic largely results from new facilities built in 1991 by Consol Inc. The Pittsburgh-based coal giant expanded its ground storage facilities by 80 percent, to accommodate 1.2 million tons ground storage, enabling Consol to ship as much as 18 million tons a year through Baltimore.
LoBianco points out that Baltimore's coal loading facilities have capacities of up to 7,000 tons per hour, and up to 50 feet of draft alongside berth.
Moreover, he adds, the port has plenty of room for future expansion: ``We've got 45 miles of waterfront, and more than half of it is undeveloped.''
KEYWORDS: COAL EXPORT by CNB