CHAMWE KAIRA
TransNamib says the timeline for finalising its N$2.6 billion locomotive procurement will depend on lender approval and the subsequent procurement process, with further updates to be provided as milestones are reached.
The state-owned rail operator plans to acquire 15 new locomotives and remanufacture 17 existing units under a revised strategy approved by the TransNamib Holdings Limited (TNHL) board and shareholders.
In a response to questions from the Windhoek Observer, TransNamib said meetings were scheduled with its lenders, the Development Bank of Southern Africa (DBSA) and the Development Bank of Namibia (DBN), as it seeks the necessary approvals to proceed.
The procurement will be handled by the Central Procurement Board of Namibia (CPBN) once the required lender approvals have been secured.
“TransNamib reached financial close on the loan conditions with its lenders in 2024. However, the CPBN-led procurement process was cancelled by the Minister of Works and Transport in April 2025,” said Alina Garises, TransNamib’s manager of corporate communications.
The revised strategy replaces the original plan to procure 23 new locomotives and remanufacture seven existing units.
According to the company, the change was driven by economic considerations and the need to identify the fastest route to introduce both new and remanufactured locomotives into its fleet.
TransNamib said the revised approach aims to improve fleet availability, accelerate revenue generation, create local employment and develop Namibia into a potential Southern African Development Community (SADC) locomotive remanufacturing hub.
The company has also declined to confirm the appointment of a proposed joint venture between Windhoek Maschinenfabric, a subsidiary of August 26 Holdings, and Malaysia-based SMH Rail to undertake the remanufacturing work.
“TransNamib cannot confirm this appointment. The applicable procurement and approval processes must be concluded before any contract award can be confirmed,” the company said.
TransNamib said the procurement process would determine the service provider responsible for providing the required technical expertise.
However, the company said the remanufacturing of the 17 locomotives would have to take place in Namibia to support local job creation, skills transfer and the development of technical expertise.
The procurement comes as TransNamib continues to grapple with an ageing locomotive fleet and limited availability.
The company has 67 locomotives, of which 80% are more than 50 years old. Although 29 are classified as operational, approximately 15 are available for service on any given day.
TransNamib also owns 1 572 wagons, tankers and coaches, of which 1 380 are operational.
The company said the procurement of new and remanufactured locomotives would be conducted in accordance with the Public Procurement Act, with the CPBN responsible for executing the process.
