In a concerning trend, railway theft has resulted in financial losses for the national service provider TransNamib, with costs exceeding N$500 000 last year alone.
This figure, however, does not account for additional expenses related to lost revenue due to operational interruptions, or the broader safety concerns posed by these thefts.
The thefts not only strain TransNamib’s resources, but also jeopardise safety and operational efficiency. TransNamib’s CEO Desmond van Jaarsveld, during a media engagement in December, emphasised the need for those involved in these thefts to cease their activities “as they pose serious risks to their lives, and the overall safety of the railway system.”
The broader impact of railway theft extends beyond financial losses, as it contributes to operational inefficiencies that have driven many transporters to opt for road transport over rail. This shift not only increases transport costs, but also adds to road maintenance expenses, on top of environmental concerns.
TransNamib is already facing significant financial challenges, with the government injecting N$300 million to cover its operational costs. The company is projected to continue making losses over the next three years, until it can acquire new rolling stock.
In response to these challenges, TransNamib is working to rebuild trust with its clients, and aims to increase its cargo transport capacity from 1.5 million tonnes annually to 4 million tonnes within the next five years.
The railway company also plans to upgrade its infrastructure, including purchasing new locomotives and wagons, with support from a N$2.6 billion loan.
TransNamib is a state-owned enterprise with 1 100 employees and three subsidiaries. It owns 67 locomotives, 1 500 wagons and a 2 860 km railway network. The company has a property portfolio valued at N$2.6 billion, and currently transports 1.3 million tonnes of freight annually.
TransNamib’s strategic goals include increasing freight volumes to four million tonnes per annum, and achieving profitability by 2028. Key focus areas include reliable rolling stock, a safe rail network, among others.
According to a presentation shared with this publication, the company’s immediate focus is on addressing maintenance backlogs, and ensuring ongoing maintenance. Capital projects are also underway to enhance corridor capacity.
Meanwhile, the CEO said TransNamib has introduced a whistleblower line to report unethical behaviour, managed by an external party to ensure confidentiality and independence.
The company has since detailed CAPEX requirements for new locomotives, equipment and maintenance, totalling N$2.6 billion by 2028. CAPEX, or for capital expenditure, refers to the funds a company uses to acquire, upgrade or maintain long-term physical assets. -mndjavera@nepc.com.na