TransNamib's Ambitious Plans: Aiming for Break-Even by 2028
Namibia's railway operator, TransNamib Limited Holdings, is setting its sights on achieving financial stability by 2028 through the acquisition of new rolling stock. According to CEO Desmond Van Jaarsveld, the upgrade is expected to enhance the company's bulk cargo transportation capabilities, paving the way for a more efficient operation.
TransNamib, a state-owned enterprise currently operating at a loss, received a significant boost of N$300 million from the Namibian government last year. This funding has instilled optimism in the company’s leadership, who believe that acquiring new rolling stock will be pivotal in turning around its financial fortunes. As part of its ambitious expansion strategy, TransNamib aims to increase its haulage capacity from the current 1.5 million tonnes to an impressive 4 million tonnes.
Van Jaarsveld noted that the majority of the company’s 67 locomotives are over 50 years old, with only about 20 in reliable working condition. To support these improvements, TransNamib signed a N$2.6 billion loan agreement with the Development Bank of Namibia and the Development Bank of Southern Africa last year. This substantial financial injection will enable the company to tackle its locomotive capacity challenges more effectively. The funds will be allocated for acquiring new locomotives, multipurpose wagons, and necessary infrastructure development. The CEO revealed plans to purchase 23 new locomotives and refurbish seven existing ones, extending their lifespan by an additional 20 years.
Currently, TransNamib operates 1,500 wagons, and two locomotives are already undergoing refurbishment in partnership with a contractor. The company employs approximately 1,100 workers, highlighting its significance in Namibia's transport sector. The N$2.6 billion loan is expected to be accessible by mid-2025. Van Jaarsveld also mentioned that the upgrade plans include advancements in signalling technology, as well as the maintenance and enhancement of railway infrastructure and security systems. TransNamib's growth focus is primarily on the cargo transportation of cement, copper, charcoal, and fuel. However, challenges remain, particularly concerning vandalism and theft of railway infrastructure, which have caused delays in cargo delivery and disruptions to train schedules. These issues pose safety risks for both passengers and staff. The financing from the Development Bank will not only help increase capacity but will also address safety concerns surrounding the aging equipment.
The loan will fund the remanufacturing of rolling stock, acquisition of new rolling stock, modernization of the TransNamib workshop, and upgrades to signalling equipment, including necessary spares. In addition to these improvements, the Namibian government is actively constructing a new railway line to replace the outdated route between Kranzberg and Otjiwarongo in central Namibia. This project is set to include a follow-up phase extending to the copper mining town of Tsumeb, further enhancing the country’s railway infrastructure.
