Namibia’s rail transport market share has declined to 12% annually due to a shortage of 17 locomotives, according to the African Development Bank (AfDB).
The AfDB noted that with only 15 trains operational daily out of the 32 required, the rail industry faces significant challenges in meeting freight demand despite growing interest from potential clients.
“The rail transport percentage of the market share has dropped to approximately 12% per annum. The market share is currently constrained by the availability of rolling stock. There are no sufficient locomotives to increase freight volumes even though there are several potential clients,” the Bank said in the transport infrastructure project brief.
The project brief also notes that efforts to secure additional locomotives are underway, backed by fresh financing.
“The situation can only improve when new additional locos are secured and brought into operation, the financing for which has been obtained,” noted AfDB.
Meanwhile earlier this month, TransNamib revealed that it is set to invest N$1.7 billion to purchase 23 new locomotives, as part of a major fleet upgrade aimed at boosting the country’s rail transport capabilities.
The company will also spend N$311 million to rebuild seven existing locomotives, a process that involves dismantling and refurbishing each one to extend its operational lifespan by another 20 years.
This comes as the company in June acquired funding from the Development Bank of Namibia (N$500 million) and the Development Bank of Southern Africa (N$2.1 billion).
According to TransNamib CEO Desmond van Jaarsveld, the N$2.6 billion investment would be allocated toward the company’s rolling stock.
“But this is what we’re going to procure. I think the most important thing is the new locomotives, 23 in total. We are also rebuilding seven, and when I say rebuild, I mean we take the whole thing apart. It’s like Lego, everything is dismantled. The locomotive is broken down into 110 pieces, and it takes about three to four months to refurbish each part, from the turbo to the engine. Once reassembled, it will last for another 20 years,” he said.
In 2023, the AfDB approved a US$196.43 million loan to Namibia, covering 51.8% of the Transport Infrastructure Improvement Project (TIIP) Phase II, with the government providing the remaining 48.2%.
The project, aligning with Namibia’s Vision 2030, aims to enhance the logistics value chain by addressing railway infrastructure challenges.
Key components include constructing 207km of new rail between Kranzberg and Otjiwarongo, modernising signalling systems on the Walvis Bay-Tsumeb line, and building bridges and stations which are now complete.
As part of the project, the AfDB’s support will have upgraded a total of 417km of rail to bolster trade competitiveness in Namibia and the southern African region.
