TransNamib secures funding for rolling stock
Rail operator promises improved operations
TransNamib has secured funding to the tune of N$2.6 billion, which will be allocated to the modernisation of its fleet.
National Rail operator TransNamib (TN) has secured funding for its rolling stock to the tune of N$2.6 billion from development financial institutions (DFIs), the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA).It will now embark on a fleet modernisation process.
In 2022, the rail operator voiced its intent to access the funding from the two DFIs in line with its integrated strategic business plan (ISBP), which identified the need for a modernised fleet as part of efforts to steer TN back towards profitability.
TN CEO Desmond Van Jaarsveld announced this week during the Public Enterprises CEO Forum that the rail operator's efforts had finally proven successful, two years after a request for the funding had been made.
“We have just secured funding from the DBN as well as the DBSA; we got a N$2.6 billion investment that will be used for much-needed replacement of the locomotives as well as multi-purpose wagons,” Van Jaarsveld said.
Old stock
According to him, there is a pressing need for TN to replace its rolling stock, with the oldest in the fleet being over 50 years old. The modernisation of the fleet will also help the rail operator meet its set mandate, Van Jaarsveld said.
The rail operator will procure the new locomotives over a 24-month period, while newer locomotives will be leased to deal with the delay in accessing its new rolling stock, he explained.
“The mandate of TN is to maintain the railway and ensure we have fit-for-purpose rolling stock. It is not currently the case; some of the rolling stock is slightly younger than I am. In fact, the oldest locomotive we have is 53 years old,” Van Jaarsveld said.
With the approval of the funding secured for the locomotives, he stressed that TN would have to improve its operational service offering to be able to honour its N$2.6 billion debt obligation to both DFIs, while aiming for increased transportation of petroleum products via rail.
“What must and will change is the improvement of efficiencies, increase in customer base; TN only transports 14% of the total fuel requirements, that needs to be upped,” Van Jaarsveld said.
As part of efforts to support TN’s ISBP, emphasis would also be placed on strengthening inter-modal transportation links.
“In Namibia alone, rail needs to work together with roads – we do not want to eliminate the trucks; in fact, the inter-modal opportunities are vital for us,” he said.