TransNamib has secured a N$2,6 billion loan from the Development Bank of Southern Africa and the Development Bank of Namibia, which will be used for its capital projects to unlock corridor capacity and address maintenance issues of its locomotives.
TransNamib CEO Desmond Van Jaarsveld says although the funds are secured, they will not access them until mid-next year.
"We qualified, we ticked all the boxes, and we haven't taken any of the money because we want to take it as late as possible. Because the moment you touch the money, you have to pay. Keep in mind we haven't started earning new revenues with the new locos, so, with our suppliers that will supply locomotives and wagons, we want to come to an arrangement; we don't want to pay upfront."
Van Jaarsveld said they intend to acquire 23 new locomotives as well as rebuild seven old ones.
He added that they will also refurbish six locomotives and lease two of those to South Africa.
The company will also upgrade its technology in the area of signaling and will maintain its railway infrastructure, including upgrading its security systems.
The TransNamib CEO added that passenger transport is not commercially viable for the company, hence the focus on cargo transportation.
Transportation of cement, copper, charcoal, and fuel tops the list.
Van Jaarsveld, who assumed this role in April this year, added that theft and vandalism are two of the biggest challenges they face as a company.
"We had the other day a phone call to our security where the public saw railway slippers in somebody's yard; immediately we worked with Nampol, and we went there, and the people couldn't provide an invoice that they bought from an auction or wherever. Left is a shebeen being built with railway slippers, and thank God our train driver saw this; if it was at night, this train would have derailed."
The CEO cautioned that theft of its railway infrastructure causes delays in cargo delivery, disrupts train schedules, and poses danger to the passengers and staff.
TransNamib has also launched its whistleblower line to help curb corruption in the company.
Asked why the Trans-Kalahari railway is still not yet operational, he
said, "I have listed the Trans-Kalahari rail; we have to see with the new ministers coming in for transport for Botswana and Namibia what is the way forward. I cannot preempt this. There has been a project team since 2011, and there is nothing yet."
In August last year, Namibia and Botswana's Joint Ministerial Committee on Transport agreed to continue with the progression of the Trans-Kalahari Railway Line project. Construction is set to start in January 2025.
TransNamib has 1,100 employees and owns 67 locomotives and 1,500 wagons. It currently transports freight of 1.3 million tonnes per annum.