[t4b-ticker]

Railway unfit for energy boom 

Railway unfit for energy boom 

Rudolf Gaiseb

Finance minister Iipumbu Shiimi said that the Namibian railway is in a precarious state to facilitate the energy boom on the horizon in the form of oil, gas and the much-talked-about green hydrogen. 

He made these remarks during the Namibian Road Sector Policy Conference in Windhoek on Monday. 

“Namibia’s rail network is not optimal, yet there are vast opportunities in the green hydrogen as well as oil and gas sectors that could benefit from a reliable rail system. We have invested significantly in the road sector, but we have a backlog when it comes to the railway. To address this, the ministry has prioritised the development of rail infrastructure in the current medium-term expenditure framework, committing 41% of the transport sector budget,” he stated. 

Meanwhile, Roads Authority CEO Conrad Lutombi at the same gathering stated that more funding is needed for the road sector.

 He called for more investors to bridge the gap.  “For the fiscal years 2022/2023 to 2024/2025, the required and optimum maintenance budget for paved and unpaved roads was approximately N$5.6 billion when measured against the approved budget of approximately N$2.8 billion. The approved budget has continued to decline, with the 2024/25 fiscal year experiencing underfunding of over N$2 billion. This reduced funding has adversely impacted the necessary maintenance activities of unpaved and paved roads across the country. The insufficient budget allocations for re-gravelling and resurfacing the national road network over the years have led to a decline in road conditions,” he noted. 

He added: “Increased funding is not simply about building new roads. It is also about improving road safety, increasing capacity to cope with transport and logistics demand, and ensuring that our roads are designed and maintained to the highest standards with an overall objective to reduce accidents and
save lives”. The finance minister refuted
claims that they invest only in road infrastructure while railways are facing a backlog. 

“While significant upgrades have been made to the road sector, the government has also committed to improving rail infrastructure. N$1.3 billion has been allocated for this purpose,” he remarked.

He stressed that while road maintenance should ideally be funded by road users, the government bears the responsibility for network expansion and co-funding major infrastructure rehabilitation projects, often in partnership with development partners. 

“For the 2024/2025 financial year, the Namibian government has allocated N$3.25 billion towards transport infrastructure development, policy implementation as well as the management of transport and state assets,” he added.  “We must identify other modes of transport for goods to reduce the pressure on our roads, and extend their useful life. 

The investment in rail is intended to relieve some of the traffic burden, especially heavy cargo transportation on the roads, thereby reducing maintenance costs and prolonging the lifespan of the road network,” he underscored. This year’s theme is ‘Strengthening Institutional Capacity for a Sustainable Road Sector’.  Shiimi also pinpointed that through smart infrastructure, digital road monitoring systems and the use of data to optimise traffic flow, Namibia will transform its transportation processes, and make the roads safer and more efficient. 

He believes that the adoption of these technologies will help to maintain and boost the sustainability of Namibia’s road network. 

“Climate adaptation is another crucial area requiring attention to ensure the resilience and longevity of Namibia’s road infrastructure. Given our adverse climatic conditions, particularly the lack of sufficient water for construction, our roads are often vulnerable to damage during floods. We hope that this gathering of experts will devise innovative solutions to create a sustainable road sector,” he continued. -rrgaseb@gmail.com