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Winter demand creates coal-trading 'road warriors'

2011-11-14 15:52    Ecns.cn     Web Editor: Su Jie
Though statistics show that domestic coal output is sufficient for national demand, many mining sectors are still finding it hard to keep up, a problem caused mainly by poor transportation.

Though statistics show that domestic coal output is sufficient for national demand, many mining sectors are still finding it hard to keep up, a problem caused mainly by poor transportation.

(Ecns.cn)--As power supplies tighten during the winter heating period, many provinces in China are rationing electricity to cope with shortages of coal.

Though statistics show that domestic coal output is sufficient for national demand, many mining sectors are still finding it hard to keep up, a problem caused mainly by poor transportation, according to China News Service (CNS).

Mr. Li, who lives in Tai'an, Shandong Province, took advantage of good local resources and made a living by trading coal for most of his life. He owned a 300,000-yuan truck and hired two drivers to transport coal to cities in Shandong and neighboring provinces like Henan and Hebei.

But due to increasing insecurity in the coal industry, Li sold the truck and got out of the trade this year, shifting his focus to farming instead.

Coal urgently needed

Rich in coal resources, Xinwen of Tai'an is crowded with trucks every year from October to March, the high season for coal demand, according to CNS.

Although Xinwen usually begins mining coal before October to build up reserves, a rapidly expanding economy ensures that stocks are often quickly depleted.

"Many times I have waited in front of a mine for a whole day," said Li, who used to make a round trip in two days and pocketed a gross profit of 5,000 to 6,000 yuan.

Yet sometimes coal is in short supply, forcing workers like Li to wait for nearly a month, resulting in losses of 50,000 to 60,000 yuan in income.

"To make up for the losses, we would overload the truck. Otherwise, we couldn't make any profit at all, because drivers were asking for higher salaries," explained Li, who mainly supplied small factories.

"The coal I provided was not even enough for a small factory," noted Li, "largely because many companies don't have enough space to store up surplus coal. Besides, coal consumption in summer is growing now. Miners are running down reserves much more quickly than before."

"Gas mouse"

"Gasoline has also been in short supply in recent years, especially this year. I couldn't get gas for my truck every two or three days," Li pointed out.

When there was a serious oil and gasoline shortage, he added, the gas station would cap its supply. "Not long ago, my truck could not be refilled, because I was only allowed to buy a certain amount of diesel."

As a result, Li could not transport coal to places far away from Xinwen.

Sometimes, when he needed more diesel, Li would secretly go to a private gas station owned by a friend late at night in order to avoid being spotted by other drivers.

"I was like a 'gas mouse,' which is someone who steals gas from other vehicles. I would bring gifts to my friend every time I went to his station in appreciation for his help," said Li.