TransNamib secures N$2.6b from DBN & DBSA

By Veronica Amaral
TransNamib successfully secured funding of N$2.6 billion from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA) this week. This will enable the company to address its locomotive capacity challenges effectively.
TransNamib will initiate the process of enhancing its locomotive fleet. Chief Executive Officer Desmond Van Jaarsveld explained the consumption of the loan facility. “The loan conditions stipulate that the funds must be strictly used to increase our capacity. We have
been transparent about the challenges our outdated equipment poses for years. “This loan will enable us to increase our capacity and 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.” Furthermore, the loan will upgrade signalling equipment, including spares and related equipment, remanufacture rolling stock, buy new
rolling stock, and modernize the TransNamib. Van Jaarsveld further stressed the transformative potential of the funding. “With access to this loan facility, we can effect real change. We have spent the past five years securing the loan and meeting the necessary conditions to access this funding.
“Now, we can finally implement our strategy to transform the company. This major investment in rail infrastructure underscores rail’s critical role in the Namibian economy. TransNamib is committed to contributing significantly to the nation’s economic growth.”

The upgrading of railway infrastructure is a priority in Namibia.
Moreover, in Namibia, modernizing the railway network is a top concern. The Ministry of Works has announced that it will begin building a new railway line to replace the outdated railway line between Kranzberg and Otjiwarongo by the end of the year.
In addition, TransNamib intends to purchase new rolling stock and equipment.
A follow-up phase for this project will run to Tsumeb. A new signalling system is also planned for the network to improve safety and line capacity, focusing significantly on the congested routes that link to Namibia’s ports.
TransNamib looks headfirst at leveraging this funding to modernize its fleet, enhance operational efficiency, and ensure the safety and reliability of its services for the benefit of the Namibian economy and its stakeholders.