National rail and freight operator TransNamib has been given the green light to upgrade its outdated locomotive fleet. 

This is after the historically financially-beleaguered transportation parastatal this week stated it successfully adhered to conditions for access to N$2.6 billion in secured funding. 

It is hoped this significant financial boost, acquired from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA), will enable TransNamib to effectively address locomotive capacity challenges. 

With this acquired funding, TransNamib aims to initiate the process of enhancing its locomotive fleet. 

CEO Desmond van Jaarsveld elaborated on the utilisation of the loan facility. “The conditions of the loan stipulate that the funds must be strictly used to increase our capacity. For years, we have been transparent about the challenges posed by our outdated equipment. This loan will not only enable us to increase our capacity, but also address safety concerns related to our aged equipment. The procurement of the new locomotives will commence soon, with an anticipated lead time of 24 months.” 

Specifically, the loan will be used for the remanufacturing of rolling stock, acquisition of new rolling stock, modernisation of the TransNamib workshop and upgrading of signalling equipment, including spares and associated equipment. 

Van Jaarsveld emphasised the transformative potential of the fundin. “With access to this loan facility, we are now positioned to effect real change. We have spent the past five years securing the loan and meeting the necessary conditions to access this funding. Now, we are finally in a position to implement our strategy to transform the company. 

This major investment in rail infrastructure underscores the critical role that rail plays in the Namibian economy. TransNamib is committed to contributing significantly to the nation’s economic growth,”he said. 

A statement from TransNamib spokesperson Abigail Raubenheimer noted that the funding arrives “at an exciting time”. 

“Currently, the upgrading of railway infrastructure is a priority in Namibia. In addition to TransNamib’s plans to procure new rolling stock and equipment, construction of a new railway line to replace the old railway line between Kranzberg and Otjiwarongo will commence towards the end of the 2024 calendar year, as undertaken by the Ministry of Works and Transport. This project will have a follow-up phase, extending all the way to Tsumeb,” the statement added. 

Moreover, TransNamib has planned a new signalling system for the entire rail network to increase safety and line capacity, with a primary focus on the busy routes leading to the country’s ports. 

“TransNamib looks forward to leveraging this funding to modernise its fleet, enhance operational efficiency, and ensure the safety and reliability of its services for the benefit of the Namibian economy and its stakeholders,” the statement reads.