Namibia to Spend N$230m on TransNamib Operations
Namibia has allocated N$230 million for the operations of TransNamib, the state-owned railway operator, in the upcoming 2023/2024 financial year. According to budget documents from the Ministry of Finance’s Mid-year Budget Review for the same year, TransNamib is set to receive this funding as part of the N$1.2 billion allocated for subsidies and other transfers to government organizations.
The documents also reveal that Namibia intends to upgrade its railway network in line with the Southern African Development Community (SADC) recommendation of an 18.5 tons/axle load. The Kranzberg to Tsumeb railway line has already undergone partial upgrades, and the Walvis Bay-Kranzberg railway line has been both upgraded and rehabilitated. The goal is to upgrade 72.5 km of railways to meet the 18.5 tons/axle load standard.
Additionally, 1.5 percent of the Sandverhaar to Bucholzbrunn Southern railway line has been upgraded and rehabilitated. Other ongoing projects include the construction of Oshakati Railway Station buildings, platforms, and civil works, which are currently 65 percent complete.
These projects fall under the Ministry of Works and Transport, responsible for developing, implementing, and regulating sectoral policies, as well as managing infrastructure and state assets.
The finance ministry said regarding external financing arrangements, negotiations between Namibia and the African Development Bank (AfDB) took place in October.
The AfDB is expected to provide funding for the upgrading of the Kranzberg-Tsumeb-Otavi-Grootfontein railway line. Implementation will commence once approval is granted by AfDB, covering the Medium-Term Expenditure Framework (MTEF) period.
In related news, the African Development Bank Group’s Board of Directors announced approval of a US$196.43 million loan for Namibia to carry out the second phase of its Transport Infrastructure Improvement Project (TIIP) on 31 October. This loan constitutes 51.8 percent of the project’s total cost, with the Namibian government contributing the remaining 48.2 percent. The project aligns with Namibia’s Vision 2030, aiming to enhance the country’s logistics value chain by addressing railway infrastructure bottlenecks and improving trade competitiveness in Namibia and the southern African sub-region.
The project involves constructing 207 km of new rail track near the existing line between Kranzberg and Otjiwarongo, using concrete railway sleepers and new rails. It also includes the construction of 16 bridges, renovation of two stations, and procurement of 55,000 tonnes of rails to build 518 kilometers of track. Modernizing the railway signaling system along the Walvis Bay-Tsumeb line is part of the project to enhance reliability, safety, capacity, and overall performance of the railway system.
Namibia’s railway network spans a total length of 2687 km, owned by the Namibian government, with TransNamib as the sole operator. Currently, only about 48% of the rail network meets the minimum SADC stipulated standard of 18.5 tons/axle load, while the remaining sections have load limits ranging from 16.5 to 17.5 tons per axle.