National rail operator TransNamib’s request for a N$2.6 billion loan to help it modernise its fleet and steer the company to meet its set goals was approved.
The approval of the rail operator’s facility was announced by its recently appointed CEO, Desmond van Jaarsveld, who says the company would soon start purchasing new rolling stock.
In 2022, TransNamib approached the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa for financing to replace its ageing rolling stock as part of a new business plan.
“We have just secured funding from DBN and DBSA, we have got it officially. It is a N$2.6 billion investment that will be used for our rolling stock,” van Jaarsveld said.
TransNamib would now initiate a process to acquire new locomotives, van Jaarsveld said.
“The procurement of the locomotives will take place very soon, there is a lead time of 24 months, we are working on a 24-month solution,” he said.
In September last year, the rail operator said it planned on turning its fortunes from the envisaged procurement of 10 locomotives estimated to cost N$800 million and the remanufacturing of its rolling stock.
One locomotive was estimated to cost approximately N$80 million. In May 2023, TransNamib revealed that 22 trains had been earmarked for re-manufacturing, while it boasted a fleet of 25 operational locos, whereas an additional 13 were under repair.
