Coal exports to Asia-Pacific countries have increased significantly, leading to higher demand for rail coal transportation eastward, particularly to China and Far Eastern ports. However, an alternative route exists through the Black and Azov Seas. Modernization of the Eastern Operating Domain continues, but demand for coal transport still exceeds railway capacity.
Coal exports to Europe fell after the EU embargo on imports from Russia was introduced. However, exports through Black Sea ports can be profitable for Russian companies, especially with growing shipments to India. In 2023, coal exports through various ports grew despite a decline in shipments via the Black and Azov Seas.
Global coal prices have declined since the beginning of 2023, but this does not prevent Russian exporters from making sound margins. The main importers of our coal are China, Turkey, and India (coal demand growth in India by 2030 is estimated at around 300 million tons), making shipments via southern ports promising for domestic companies.
Looking ahead, exports are expected to grow this year, not due to relieving bottlenecks in feeder infrastructure to Azov and Black Sea ports, but thanks to increasing the capacity of the Eastern Operating Domain and building a private railway to the Sea of Okhotsk coast from the Elga coal deposit.