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Home / TransNamib buys six locomotives for N$1 billion
TransNamib buys six locomotives for N$1 billion
2015-09-14Staff Report 2 Windhoek TransNamib on Friday reverted to a brand it has trusted for the last 50 years when it agreed to purchase six new locomotives from General Electric (GE), in a deal sources estimate to be worth about N$1 billion. The locomotives are said to be an improved model of the current GE locos that have been in TransNamib’s service for the past half century. Since independence this is the company’s first purchase of GE locomotives, which are expected to last for at least 30 years. Acting CEO of TransNamib, Hippy Tjivikua, and the president and CEO of GE Transportation for Africa, Thomas Konditi, sealed the deal at Friday’s signing ceremony in Windhoek. According to the agreement, TransNamib will purchase six C23EMP locomotives from GE with delivery expected within the next 18 to 20 months. The six locomotives are to be deployed specifically to transport sulphuric acid from Tsumeb to Arandis, following the 10-year Rail Transport Agreement signed earlier this year between TransNamib and Dundee Precious Metals Tsumeb. Although no exact value is forthcoming for this 10-year deal that is scheduled to commence in November, experts reckon it is worth billions of dollars. During July this year two TransNamib locomotives and one of 20 wagons filled with sulphuric acid, destined for use in uranium leaching at Rössing Uranium, derailed outside Walvis Bay. In December 2012, two locomotives and 17 wagons carrying manganese derailed near the same location and this accident alone was estimated to have cost TransNamib over N$65 million. TransNamib is however adamant that the national rail network is able to handle the transportation of hazardous material. “It is a top priority of government to eventually move all the transportation of hazardous and heavy goods from road to rail. This will not only increase the lifespan of our roads but will also make road transport a lot safer,” said a source within TransNamib. In fact, the Ministry of Works and Transport has contracted a private company to upgrade and maintain the railway network. Work is currently being carried out on the railway between Otavi and Tsumeb, which when completed should realise an upgrade to international standards. “GE Transportation is committed to partnering with Namibia and the southern African region to fast-track the revitalsation of the rail industry. The rail sector is key to unlocking growth opportunities, promoting regional integration and moving goods from road to rail,” stressed GE’s Konditi. Meanwhile, Acting Director of Railways in the Ministry of Works and Transport, Justice Ncube, congratulated both TransNamib and GE for the excellent bilateral relations that led to the signing of the locomotive purchase agreement. “We, in government, are pleased with the process and the speed at which TransNamib and GE concluded the purchase deal. And while we are aware that the manufacturing and delivery will take approximately 20 months, we are already looking forward to the day when these locos land in Walvis Bay,” said Ncube. “These milestones are the kind of outcomes that the government wishes to see for TransNamib to transform the railway system in Namibia.” In 2014 TransNamib sold four locomotives, which were bought in China for N$42 million in 2004. It cited safety concerns. The four CKD diesel electrical locomotives and 10 mainline railway passenger coaches, which were inaugurated in 2004 by the former TransNamib CEO, John Shaetonhodi, were sold on tender. “The CKD8C ... the first batch of four locomotives bought from China are unsafe to operate due to poor braking and poor filtration systems. There are also interface problems between engine and alternator, and unsafe multiple locomotive workings. The locomotives’ electrical systems are poorly designed, posing challenges to operate safely,” said TransNamib’s senior engineer, Joe van Zyl, at the time. The four locomotives were purchased from Ziyang Locomotive Works, China North Railways, by Shaetonhodi as CEO and Matty Hauuanga as general manager of engineering. 2015-09-14Staff Report 2
