TransNamib Hoping to Break Even in Three Years’ Time
Namibia’s railway operator, TransNamib Limited Holdings hopes to break even by 2028 after it acquires new rolling stock. The upgrading of its rolling stock is expected to improve its bulk cargo transportation, CEO Desmond Van Jaarsveld has said.
The loss-making state-owned company, which received N$300 million in funding from the government last year for its operations, is optimistic that its financial situation will turnaround with the acquisition of new rolling stock.
As part of its expansion plans, the company is planning to increase its haulage capacity to 4 million tonnes from the current 1.5 million tonnes, Van Jaarsveld said. He said most of its 67 locomotives are more than 50 years old with about 20 in good running condition.
As part of improving its financial position, TransNamib signed an N$2.6-billion loan agreement with the Development Bank of Namibia and the Development Bank of Southern Africa last year. The significant financial boost will enable the company to address its locomotive capacity challenges effectively. The loan will be used to acquire new locomotives, multipurpose wagons and infrastructure development.
Van Jaarsveld said the company plans to buy 23 new locomotives and further refurbishment of seven locomotives, which will see their lifespan extended by another 20 years. Currently, the company owns 1500 wagons. Already, two locomotives are being refurbished in conjunction with a contractor. TransNamib employs 1 100 workers.
The CEO said the N$2,6 billion will be available to the company in mid-2025. Van Jaarsveld said other upgrades include technology in the area of signalling and will maintain its railway infrastructure and upgrade its security systems. He added that TransNamib’s growth focus is on cargo transportation of cement, copper, charcoal and fuel.
Vandalism and theft of railway infrastructure have become a problem for the company leading to delays in cargo delivery, disrupting train schedules and endangering the safety of both the passengers and staff, said Van Jaarsveld. The loan from the Development Bank of Namibia and the Development Bank of Southern Africa will apart from increasing its capacity also address safety concerns related to its aged equipment.
Specifically, the loan will be used for the remanufacturing of rolling stock, acquisition of new rolling stock, modernisation of the TransNamib workshop and upgrading of signalling equipment, including spares and associated equipment.
The Namibian government is constructing a new railway line to replace the old railway line between Kranzberg and Otjiwarongo in central Namibia. The project will have a follow-up phase extending all the way to the copper mining town of Tsumeb.
Written for Railways Africa Magazine by Chamwe Kaira