• Contact Us
  • About Us
  • Advertisement
  • Privacy & Policy
Thursday, July 3, 2025
SUBSCRIBE
The Brief | Namibia's Leading Business & Financial News
13 °c
Columbus
19 ° Tue
21 ° Wed
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
Subscribe
No Result
View All Result
TB image banner 750x140
Home Business & Economy

Rail inefficiencies drive up Namibia’s energy transport costs

by editor
September 17, 2024
in Business & Economy
56
A A
68
SHARES
1.1k
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Namibia’s rail transport sector is plagued by inefficiencies, significantly increasing energy costs across the country, a recent CITAC report commissioned by Puma Energy has revealed.

You might also like

Namibia seeks stronger U.S. partnerships at Africa Business Summit

April inflation rises to 3.6%, driven by food and housing costs

NamRA uncovers N$666,000 tax refund fraud scheme

The report titled, Bridging the Gap in Energy Infrastructure, reveals that railage rates between Walvis Bay and Windhoek are priced at N$22 per cubic metre (m³), compared to N$24 per m³ by truck.

Transporters often use railage rates as a benchmark for truck rates, given that rail rates set the recovery in the price structure.

Despite the theoretical cost advantage of rail transport, inefficiencies in rail operations are driving up overall transport costs.

“Railage rates could be in the region of N$115 per m³, compared to N$146 per m³ for road transport across the same distance. The challenge in Namibia is the inefficiency in rail operations, which results in a continued reliance on road tankers,” said the report.

The report highlights that while rail transport offers potential cost savings, operational shortcomings are leading to higher expenses, forcing many to opt for the more expensive road transport.

The report also addresses the Trans-Kalahari Railway project, which aims to establish a 1,500km rail link connecting Walvis Bay and Gaborone. The project is currently on hold and seeking investors.

The report notes that without a significant increase in mining tonnage, the investment in this railway project is not justified solely by the volume of liquid fuel.

“The Trans-Kalahari Railway project was designed to enhance regional connectivity and support economic growth. However, its current suspension reflects broader challenges in infrastructure investment,” the report states.

“The lack of immediate returns from liquid fuel volumes means that large-scale projects like this one may remain on hold until mining tonnage increases.”

On the current state of rail transport, Puma Energy Namibia General Manager Adell Samuelson said historically, rail was the preferred method for fuel transportation due to its efficiency and safety compared to road transport.

However, Samuelson explained that recent inefficiencies have drastically reduced the reliance on rail.

“I spoke about it earlier this year, last year. I’ve been in this business for just over 20 years. Rail was once our first preference for fuel supply. It was self-sufficient, reduced road accidents, and could transport large quantities. But that picture has changed dramatically. We now rely on rail for only about 12% to 14% of our transport needs,” Samuelson said.

She elaborated that in the past, rail accounted for 60% to 70% of the company’s transport, and this has shifted significantly.

“Our railway provider, TransNamib, has faced challenges, including losing locomotives and receiving a government bailout. Despite plans to convert some locomotives to green technology, the rail network remains inadequate. This forces us to rely more on road transport, increasing the risks of accidents, emissions, and costs,” she said.

The CITAC report underscores the need for Namibia to improve the efficiency of its rail network to attract more volumes and reduce reliance on road transport.

“Addressing these inefficiencies is crucial for lowering transport costs and improving logistics in the region,” the report said.

author avatar
editor
See Full Bio
Tags: africa newscompanieseconomyenergynamibianamibia newsPuma EnergyTrans-Kalahari RailwayTransNamib
Share27Tweet17Share5
Previous Post

Trade Ministry plans streamlining procurement to support MSMEs

Next Post

Electricity tariff subsidies and tax cuts: The ironic reliefs and a postponed burdens

Recommended For You

Namibia seeks stronger U.S. partnerships at Africa Business Summit

by reporter
June 23, 2025
0
Namibia seeks stronger U.S. partnerships at Africa Business Summit

Namibia will participate in the 2025 U.S.-Africa Business Summit, with the country’s attendance aimed at deepening economic ties with the United States and promoting investment and trade opportunities....

Read moreDetails

April inflation rises to 3.6%, driven by food and housing costs

by reporter
May 13, 2025
0
April inflation rises to 3.6%, driven by food and housing costs

Namibia’s annual inflation rate rose to 3.6% in April 2025, primarily fuelled by increases in food and housing-related costs, the Namibia Statistics Agency (NSA) has reported. According to...

Read moreDetails

NamRA uncovers N$666,000 tax refund fraud scheme

by editor
May 5, 2025
0
NamRA uncovers N$666,000 tax refund fraud scheme

The Namibia Revenue Agency (NamRA) has uncovered a fraudulent scheme that resulted in the illegal payout of tax refunds totaling more than N$666,000 between January and April 2025,...

Read moreDetails

141,000 non-compliant businesses face deregistration by BIPA

by editor
May 2, 2025
0
141,000 non-compliant businesses face deregistration by BIPA

More than 141,000 businesses in Namibia are at risk of being deregistered after the Business and Intellectual Property Authority (BIPA) began a phased process to remove entities that...

Read moreDetails

Namibia to create 3,600 jobs through global accelerator project

by editor
April 30, 2025
0
Namibia to create 3,600 jobs through global accelerator project

Namibia is set to roll out the Global Accelerator project during the current financial year, aiming to generate over 3,600 jobs through the biomass sector and other sustainable...

Read moreDetails
Next Post
Electricity tariff subsidies and tax cuts: The ironic reliefs and a postponed burdens

Electricity tariff subsidies and tax cuts: The ironic reliefs and a postponed burdens

Related News

Nigeria’s treasury chief arrested over multibillion-rand fraud

Nigeria’s treasury chief arrested over multibillion-rand fraud

May 17, 2022
Namibian women entrepreneurs to receive AWE Training

Namibian women entrepreneurs to receive AWE Training

April 4, 2023
Who determines the property price of your home?

Who determines the property price of your home?

July 22, 2022

Browse by Category

  • Africa
  • Agriculture
  • Analysis
  • Business & Economy
  • Columnists
  • Companies
  • Finance
  • Finance
  • Fisheries
  • Green Hydrogen
  • Health
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • namibia
  • Namibia
  • News
  • Opinions
  • Property
  • Retail
  • Technology
  • Tourism
  • Trade
The Brief | Namibia's Leading Business & Financial News

The Brief is Namibia's leading daily business, finance and economic news publication.

CATEGORIES

  • Business & Economy
  • Companies
    • Agriculture
    • Finance
    • Fisheries
    • Health
    • Property
    • Retail
    • Technology
    • Tourism
    • Trade
  • Finance
  • Green Hydrogen
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • namibia
  • News
    • Africa
    • Namibia
  • Opinions
    • Analysis
    • Columnists

CONTACT US

Cell: +264814612969

Email: newsdesk@thebrief.com.na

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Companies
  • Mining & Energy
  • Business & Economy
  • Opinions
    • Analysis
    • Columnists
  • Africa

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.