Stronger regulatory framework needed before opening rail sector

Staff Writer

Namibia will need to put in place a robust system of checks and balances, as well as update and develop new laws and regulations, before opening the railway sector to operators outside TransNamib, according to the ministry of works and transport.

Executive director in the ministry, Jonas Sheelongo, said liberalising the railway sector would require significantly greater regulatory capacity to oversee multiple operators and ensure compliance with safety and operational standards.

“Opening up the railway sector for other players outside TransNamib requires robust systems of checks and balances, updating and developing new laws or regulations commensurate with such an initiative,” Sheelongo said.

He explained that the entry of more operators into the railway industry would result in increased activity across the sector, placing greater demands on government oversight.

“Many players mean a lot more activities, more or additional capacity in terms of equipment and manpower for doing oversight and enforcement,” he said.

The ministry also confirmed that initial planning and discussions have started on the establishment of a railway fund, which is intended to provide financial support to the country’s rail sector.

According to Sheelongo, a railway fund would typically be established to finance public service obligations, support railway infrastructure development and meet other sector requirements as they are identified.

“A railway fund would normally be established for financial support to the rail sector, such as funding public service obligations, funding infrastructure development, amongst other needs as and when they are identified,” he said.

The proposal to establish a railway fund was also contained in the African Development Bank’s Namibia Country Strategy Paper 2025–2030.

The bank said Namibia has set an ambition of becoming a transport and logistics hub for Southern Africa, supported by its strategic transport infrastructure.

The country’s transport sector consists of four subsectors including roads covering approximately 48900 kilometres, a railway network of 2 687 kilometres, aviation with eight airports, and maritime infrastructure centred on the ports of Walvis Bay and Lüderitz.

Walvis Bay and Lüderitz are the country’s main commercial ports on the Atlantic Ocean, with Walvis Bay handling approximately 21.2 million tonnes of cargo annually, while Lüderitz primarily serves South Africa and southern Namibia.

The bank noted that the railway sector is constrained by an aging rail network, shortages of technical skills, and gaps in the country’s legal and regulatory framework.

It also stated that the Namibian government’s shift in transport policy from road to rail is reflected in recent financing allocations aimed at strengthening the rail network.

Namibia is currently working on a rail network development programme that prioritises improving rail and road connectivity with Angola and Zambia as part of broader regional integration efforts.

The bank further said unlocking the logistics opportunities along the Walvis Bay–Ndola–Lubumbashi Corridor will require stronger cooperation with neighbouring countries, improvements in logistics services and the closing of key infrastructure gaps, particularly in the railway sector.

According to the bank, expanding rail infrastructure along the corridor will be essential to facilitate the efficient movement of bulk cargo, including copper and other minerals exported from the Democratic Republic of Congo and Zambia through the Port of Walvis Bay.

Related Posts