Coal ready to roll again as ports, railroads prepare to reopen

Washington (Platts)--2Sep2005

Coal will be sailing soon from ports damaged by Hurricane Katrina, and
railcars laden with coal are moving farther into the area daily.

The Army Corps of Engineers said it surveyed the Mississippi River along the
centerline from Baton Rouge, La., to the Gulf of Mexico sea buoy and found no
channel obstructions. The river was reopened to vessels with drafts less than
30 feet. 

The Coast Guard was preparing to open the river to deep-draft navigation once
ship pilots are available to take vessels in and out of port, screening
vessels are available and shipments are prioritized. It said deep draft
shipping will be operated during daylight hours only for one-way traffic until
aids to navigation are fully in service. Once completed, two-way traffic will
resume 24 hours/day. 

In Mobile, Ala., the Alabama State Port Authority personnel were back at work
after power was restored late Wednesday night.

Port spokeswoman Judith Adams told Platts Coal Trader Thursday that the
channel would reopen to vessels with drafts up to 42 feet on Saturday or
Sunday once the Coast Guard had replaced the aids to navigation including
buoys, channel markers and lights.

She said the port's McDuffie Coal Terminal, which handles 20 million tons of
export coal/year, and Bulk Materials Facility, which handles most of the
port's coal imports, only sustained minor roof damages and were waiting for
the channel to reopen and for the railroads to reopen tracks into the
terminal. Neither facility took on water, and "the coal piles and our
inventory are all in good shape."

Adams said one ship was already loaded at McDuffie waiting to sail and a
half-dozen ships, including at least one loaded with coal, were waiting to
come into port.

RAILROADS REROUTING

CSX Corp. said it was still evaluating damages on Thursday, but shipments to
customers outside of the immediate Gulf Coast storm area were being rerouted
through its western gateways, including East St. Louis, Ill., Memphis, Tenn.,
and Montgomery, Ala.

The railroad said its most severe damage was concentrated on the 100-mile
route between Pascagoula, Miss., and New Orleans, including several bridges.
CSX said repair work has begun, but will take some time to complete.

"The physical impact to our rail infrastructure, while significant, is
confined to a relatively small segment of our 22,000-mile network," said
Michael Ward, chairman, president and CEO.

Norfolk Southern Corp. said Thursday that it has restored service between
Birmingham and Mobile, Ala., and between Birmingham and Meridian, Miss.
Traffic normally moving though New Orleans for interchange is being rerouted.

"Efforts are continuing as we repair the damage sustained from Hurricane
Katrina to restore our route into the New Orleans area as soon as possible,"
NS said.

The railroad has an embargo in place for all shipments to locations south of
Meridian and for Mobile, except for NS-served facilities. "This action was
taken to avoid further complication of operations due to congestion in the
area until routes are restored to service," NS said.

Both railroads said they would waive diversion charges for traffic en route to
the area affected by the hurricane.

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