By Dan Molinski
BOGOTA--Leaders of Colombia's main railway entered a second day
of talks Friday with unionized workers in hopes of ending a 12-day
strike that has halted more than half of Colombia's coal
exports.
Peter Burrowes, president of the Fenoco railway that normally
carries 160,000 tons of coal daily from mines to shipping ports on
the Atlantic shore, said the first day of talks saw no
progress.
"Zip, zero, nothing, nada," Burrowes said by telephone just
before the talks began Friday. Nonetheless, he said the fact that
both sides agreed to meet for a second day is positive.
The Fenoco railroad is owned by the coal companies that use its
lines to transport coal to the coast: Glencore International PLC
(GLNCY, GLEN.LN), Alabama-based Drummond and Goldman Sachs Group
Inc.'s (GS) local unit, CNR.
After almost two weeks without rail transportation, there are no
coal stocks left at the ports, and at least some of the companies,
including Glencore, have had to declare force majeures on some
shipments. A force majeure removes the firms from any legal
obligation to deliver coal shipments that they previously agreed to
in a contract.
Analysts warn that global coal prices could rise if the strike
continues to drag on because it would reduce overall supplies.
Colombia is among the world's top coal exporters. The South
American nation produced 87 million metric tons of coal last year
and was aiming for almost 100 million tons in 2012.
The Fenoco railway aims to carry some 52 million tons of coal
this year along 220 kilometers (135 miles) of rail lines in
northern Colombia. Burrowes said for now, the railway still hopes
to achieve that target.
-Write to Dan Molinski at dan.molinski@dowjones.com
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