TransNamib Responds to Secured N$2.6 Billion Funding to Boost Capacity and Modernisation
TransNamib is pleased to announce that it has successfully met all conditions to access the secured funding of N$2.6 billion from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA). This significant financial boost will enable the company to address its locomotive capacity challenges effectively.
With this acquired funding, TransNamib will initiate the process to enhance its locomotive fleet. CEO Desmond Van Jaarsveld elaborated on the utilisation of the loan facility: “The conditions of the loan stipulate that the funds must be strictly used to increase our capacity. For years, we have been transparent about the challenges posed by our outdated equipment. This loan will not only enable us to increase our capacity but also address safety concerns related to our aged equipment. The procurement of the new locomotives will commence soon, with an anticipated lead time of 24 months.”
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.
Van Jaarsveld emphasised the transformative potential of the funding: “With access to this loan facility, we are now positioned to effect real change. We have spent the past five years securing the loan and meeting the necessary conditions to access this funding. Now, we are finally in a position to implement our strategy to transform the company. This major investment in rail infrastructure underscores the critical role that rail plays in the Namibian economy. TransNamib is committed to contributing significantly to the nation’s economic growth.”
The funding arrives at an exciting time. Currently, the upgrading of railway infrastructure is a priority in Namibia. In addition to TransNamib’s plans to procure new rolling stock and equipment, construction of a new railway line to replace the old railway line between Kranzberg and Otjiwarongo
will commence towards the end of the 2024 calendar year as undertaken by the Ministry of Works and Transport. This project will have a follow-up phase extending all the way to Tsumeb. Additionally, a new signalling system is planned for the network to increase safety and line capacity, with a primary focus on the busy routes leading to the ports of Namibia.
TransNamib looks forward to leveraging this funding to modernise its fleet, enhance operational efficiency, and ensure the safety and reliability of its services for the benefit of the Namibian economy and its stakeholders.