Works and Transport Minister Veikko Nekundi has cancelled TransNamib’s plan to buy 23 new locomotives for N$1.7 billion, citing the risks of relying on a single foreign supplier.
The locomotives were to be procured using part of the N$2.5 billion loan TransNamib received from the Development Bank of Southern Africa.
The state-owned railway operator was reportedly planning to standardise its fleet by procuring General Electric/Wabtec locomotives – the dominant brand currently in use across its operations.
“It transpired that the procurement of the locomotives was to be done through a direct procurement method from a single source manufacturer. It would be too risky to procure all locomotives from a sole manufacturer and without competition,” Nekundi said.
He warned that the move could expose Namibia to geopolitical tensions and future trade wars.
“Procuring standardised locomotives from a single source exposes Namibia as a country to the current and future trade wars. Potential risks are mitigated when procuring and importing assets for current and future use,” he said.
TransNamib has been instructed to inform the Central Procurement Board of Namibia (CPBN), which endorsed the decision in a letter dated 6 May 2025.
A new tender process will now be launched in line with public procurement laws, opening the bid to multiple suppliers.
Nekundi said government would look at various supply options for “technically compliant and efficient locomotives that can adapt to Namibia’s climatic conditions.”
Besides the 23 locomotives, TransNamib had also planned to upgrade its mechanical and heavy-duty equipment, steam boilers and tools at a cost of N$29 million. An additional N$249 million had been allocated for the procurement of 300 wagons.
