TransNamib CEO Desmond van Jaarsveld has highlighted critical challenges facing Namibia’s rail transport sector.
He specifically pointed out inefficiencies that have forced fuel and mining operators to rely predominantly on road transport.
In a recent presentation, he noted that rail accounts for only 12% of fuel transport in Namibia, a figure he deems “way too low”.
Van Jaarsveld emphasised the potential for rail to reclaim market share, stating that TransNamib aims to increase this percentage to 40% within the next five years.
He noted that one cargo train can remove 30 to 40 trucks from the national roads. This underscores the environmental and logistical benefits of a more efficient rail system.
The CEO pointed out that the company operates with a N$2.6 billion property portfolio, which includes 67 ageing locomotives and 1 500 wagons, across a railway network spanning 2 860 kilometres.
Currently, the company transports about 1.3 million tonnes of cargo annually, encompassing acid, fuel and minerals. Van Jaarsveld was speaking at the second day of the Road Sector Policy Conference, which concluded in the capital on Tuesday.
Analysts predict that over the next five years, the transport and logistics sector in Namibia could grow by 20%. This may result in an increase in TransNamib’s market share from 16% to 30%. He stressed the importance of reliable rolling stock and a safe rail network as foundational elements for improving service efficiency.
He outlined a long-term strategy that includes increasing railway line load capacity, unlocking key transport corridors, and removing speed restrictions that currently hinder operational efficiency.
“The annual maintenance cost for TransNamib is approximately N$120 million, with an additional backlog of N$50 million, which must be addressed to ensure a solid and effectively-maintained railway system,” he stated.
Despite the challenges, he expressed optimism about government support in revitalising the rail infrastructure.
The commitment from the government is seen as pivotal in enhancing the operational capabilities of TransNamib, and restoring its role as a vital player in Namibia’s transport sector.
In the 2024/25 national budget, finance minister Iipumbu Shiimi made provisions to the tune of N$2.5 billion in the 2024/25 financial year towards railway infrastructure.
This consists mainly of N$1.9 billion for the upgrading of the Kranzberg-Otjiwarongo railway section, and N$488 million for the rehabilitation of the Sandverhaar-Buchholzbrunn railway section in the south.
“In this context, critical sections of the national railway line are in a state of disrepair and will, thus, enjoy attention from a funding perspective over the medium-term expenditure framework (MTEF),” said the minister at the time.
He added a total of N$6.6 billion is earmarked for railway network development over the MTEF.
These allocations are further complemented by operational funding, a dedicated loan facility to purchase rolling stock, as well as ongoing efforts to improve governance at TransNamib.
Recent reports have corroborated Van Jaarsveld’s concerns regarding rail inefficiencies driving up transport costs in Namibia.
During a recent media briefing, general manager of Puma Energy Namibia Adell Samuelson expressed concern about the current state of rail services.
Historically, rail has been considered the preferred method for transporting fuel due to its efficiency and safety, compared to road transport.
While railage rates are theoretically lower than road transport rates, operational inefficiencies lead many transporters to favour road options, despite higher costs.
This trend has significantly impacted companies like Puma Energy, which historically relied on rail for up to 70% of its transport needs, but now sees that figure reduced to between 12% and 14% due to ongoing operational challenges.
Improving TransNamib’s efficiency is not just crucial for the State-owned company, but also vital for reducing overall energy transport costs as well as road maintenance costs in Namibia.
The future of rail transport hinges on addressing these inefficiencies and revamping infrastructure to restore confidence among fuel and mining operators in rail as their preferred mode of transportation.
Van Jaarsveld revealed that the railway system has faced an alarming surge in theft and vandalism, jeopardising safety and the economy.
He cautioned that this ongoing crisis has drawn attention to the serious risks posed by criminal activities targeting railway infrastructure, with components being stolen almost daily.
He said theft of railway components has reached a critical level, with instances of criminals dismantling tracks and stealing sleepers becoming commonplace.