Chamwe Kaira
TransNamib Holdings, the troubled state-owned railway company, is approaching the final stages of securing a loan agreement amounting to N$2.6 billion. This financial arrangement has been entered into with the Development Bank of Namibia and the Development Bank of Southern Africa.
Abigail Raubenheimer, the spokesperson for TransNamib, conveyed that the company is currently in the last phases of planning and preparation. Several conditions need to be met by TransNamib in order to gain access to the funding, she explained to Observer Money this week.
“Remaining committed to future objectives, TransNamib recognizes the pivotal role of rail transport in positioning Namibia as a logistics hub, particularly due to its unparalleled capacity for bulk cargo handling,” Raubenheimer emphasized.
She went on to mention that TransNamib is diligently enhancing operational efficiencies and working towards expanding its capacity. This is aimed at establishing TransNamib as the preferred bulk transporter in Namibia. The planned N$2.5 billion loan facility from DBSA/DBN is expected to play a significant role in achieving this goal.
Raubenheimer detailed that the funds from the loan will be allocated for several purposes, including the remanufacturing of rolling stock, the acquisition of new rolling stock, procurement of spare parts, and more. Moreover, the money will be utilized for modernising the TransNamib Workshop, upgrading signaling equipment along with related spares and apparatus.
She highlighted the forthcoming two years as crucial for the execution of TransNamib’s turnaround strategy. This period will see the implementation of plans to enhance capacity. The Integrated Strategic Business Plan for the next five years (2024-2029), which addresses the challenges and tactical measures required for sustainability, is also in advanced stages of approval.
Responding to queries about the company’s operational requirements, Raubenheimer underscored that TransNamib aims to double its revenue. To achieve smooth operations, the company’s daily revenue target needs to reach approximately N$2.8 million.
Raubenheimer refuted claims that TransNamib was considering workforce reductions. She clarified,
“These claims are false and originated from inaccurate reports by a media outlet. TransNamib has engaged with the relevant media source, resulting in a retraction and written apology to TransNamib.”
Reflecting on the company’s financial challenges over recent years, she acknowledged, “To improve our situation, increased revenue generation is imperative, and this necessitates reliable rolling stock. After years of advocacy, we have at last secured funding through DBSA and DBN. Progress is evident on the horizon as we move ahead.”
