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    Beijing faces coal shortage
    ( 2003-12-12 23:45) (China Daily)

    The ongoing coal shortage in Beijing is sounding alarm bells for the capital's heating and power-supply system.

    And the insufficient coal supply has caused price surges for the fuel at local marketplaces.

    Experts suggest a designated highway linking Beijing and coal sources be established by the government to transport the urgently needed energy.

    According to the Beijing Coal Association, the shortfall of coal has surpassed 3 million tons, or one-third of the total of the capital's heating needs for the winter.

    Meanwhile, the current 3 million tons in stock may narrowly sustain most heat-supplying companies in Beijing through the end of this month, said Zhang Debao, executive deputy secretary-general of the association.

    Because of the coal scarcity, the Beijing-based Bridge Plant suspended heat to its employee dormitory last Sunday.

    Zhou Zhen, a single-storey house dweller who produces heating on his own, told China Daily the purchase price of coal in the Dayanglu market in Beijing's Chaoyang District has soared by more than 150 yuan (US$18) per ton since earlier last month.

    The 25-year-old with a "sluggish'' income said he could barely afford the hike.

    "One cause is the recent crackdown on overloaded trucks by provinces and municipalities including Hebei and Shanxi provinces, the Inner Mongolia Autonomous Region and Beijing, Tianjin municipalities,'' said Zhang.

    "It has increased the cost of coal transport because many overloaded vehicles were forbidden to run on the road.''

    According to a report from Beijing Daily, since the restrictions enacted early this month, the number of transports in and out of Beijing has decreased by up to 80 per cent, while the unloaded goods in Beijing alone have amounted to 6,492 tons in the first week of implementation.

    A former truck driver told China Central TV he had quit his job after the restrictions while a supervisor at a coal base in Shanxi said the market was underperforming due to precious few transport vehicles being available.

    However, the absence of substantial storage bases for coal in Beijing has forced the city to import some 26 million tons every year from North China's Shanxi Province and the Inner Mongolia Autonomous Region, with 9 million tons coming in on the highway and another 17 million tons by rail.

    "But as Spring Festival (Chinese lunar New Year) is drawing near -- during which railway departments are always busy dealing with the rush of passenger transport -- freight transport by trains can't rise substantially,'' Zhang said.

    On top of that, restrictions have even led to price hikes in vegetables and fruits in local markets since they also rely on imports from other provinces like East China's Shandong.

    To ease the tensions, traffic and communication departments said 100 trucks have been ready to haul coal in from other provinces.

    They also said that the current price fluctuations are dictated by the market demand and noted the market could be devastated if coal prices remain too low.

    But Zhang said the temporary alleviation is by no means a fundamental solution to coal shortages. He noted "reasonable'' charges are asked for every trip.

    Apart from opening a designated route for coal transport use, experts have urged governments to allocate subsidies for coal freight.

    The government should also set up major storage bases for coal around Beijing in case of emergency incidents, they say.

     
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