The government requires approximately N$10 billion to revamp the railway network between Kranzberg-Otjiwarongo-Otavi-Tsumeb-Grootfontein, an official has revealed.
The N$10 billion comes after having spent N$3 billion towards rehabilitating the now complete Walvis Bay to Kranzaberg.
The Kranzberg to Otjiwarongo railway network is in the next phase and is set to begin later this year and run for about 4 years at a cost of N$4 billion.
TransNamib acting Chief Executive Officer Webster Gonzo said thereafter, the upgrade of Otjiwarongo Tsumeb will commence needing additional funding of N$3 billion, while a stretch between Otavi and Grootfontein will require N$3 billion as well.
“In the past decade, the government invested over N$3 billion in rail upgrades. However, it’s only about 24% of the current network that is in good shape, while most of it constituting 76% is not at the level required to efficiently run an efficient rail service. And in order for us to move more cargo, safely and efficiently, much more investment is required,” said Gonzo.
He emphasised the importance of the rail upgrades, citing that Walvis Bay Tsumeb route where they run up to six trains a day was one of its most lucrative routes, generating about 70% of TransNamib’s revenue, in addition to the Luderitz-Aus route recommissioned in 2018, after being in operation for 18 years.
“There is potential for TransNamib to return to its glory days, but it is only through infrastructure upgrades and procurement on new locomotives that we can increase our freighting footprint. Rail is an economic enabler in moving cargo freight volumes that are unmatched. Through this consumer goods can go down thus bringing relief. Therefore, the route to be undertaken it is crucial more so that of Kranzberg because it is an intersection connecting Coast, Central and North,” said Gonzo.
In addition, he said the effectiveness of rail will reduce the number of trucks on national roads. On average one cargo train eliminates about 30 trucks on the road.
TransNamib operates a 2,883 km national rail network. Gonzo shared these details during a business engagement session with Small and Medium Enterprises, as facilitated by the Namibia Chamber of Commerce and Industry, for the SME sector to understand TransNamib’s operations and procurement processes for possible business engagements.
He said TransNamib has managed to improve some matters of operational inefficiencies including business strategies which has now allowed the company to increase its business portfolio.
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