Degradation characteristics of South Blackwater and Ensham coal from the stockpiles of the Gladstone Port Authority were tested by using a drop tests apparatus to measure the fines generation during transport and handling through the Port's ship loading facilities. The effect of different types of surfaces onto which the coal was dropped with initial fines was determined by dropping onto a steel impact surface, conveyor impact surface and coal impact surface (stockpile). The results showed that coal with initial 10% fines dropped on steel surface produced more fines than conveyor and coal surface. Samples with an initial 30% fines with the lump coal produced no significant difference in additional fines generation between the three impact surfaces. The cushioning effect of fines on coal impact surface (stockpile) was the lowest compared to the other impact surfaces.