TransNamib advised to share rail network
Private operators could improve efficiency
TransNamib is currently the sole user of Namibia's rail infrastructure.
Members of the parliamentary standing committee on economics and public accounts have advised national rail operator TransNamib to share the rail network with private operators.The recommendation is contained in a report prepared by the committee, which assessed the state of TransNamib and the rail network. The transport ministry is the current custodian of Namibia’s rail infrastructure.
The report advised that providing market access to the railway network to private operators may improve efficiencies in the sector and stimulate competition.
“TransNamib should explore the possibility of allowing private operators to utilise the rail network through concession agreements. This approach can invigorate the rail sector, enhance efficiency and stimulate competition, ultimately resulting in improved services,” the report said.
Impact on potential loan
The report, however, noted that it could compromise the terms of a loan agreement the rail operator is in the process of engaging in with the Development Bank of Southern Africa (DBSA). TransNamib approached the development lender in 2022 and is seeking N$2.6 billion to modernise its fleet.
“It should be noted that this could compromise the terms of the loan TransNamib intends to take from the Development Bank of South Africa, as TransNamib will be required to generate sufficient cash flow to repay the loan,” the report said.
The establishment of a separate entity to oversee Namibia’s rail infrastructure. The envisaged entity, to be known as the Namibia Railway Authority (NRA), would manage Namibia’s railway infrastructure.
New entity
The envisaged entity, to be known as the Namibia Railway Authority (NRA), would manage Namibia’s railway infrastructure.
“The NRA’s primary focus will be on regulating and overseeing the country’s railway operations, ensuring that they align with national objectives and adhere to the highest standards of safety, efficiency and sustainability. The establishment of the NRA will significantly contribute to the efficient, safe and sustainable management of Namibia’s railway sector,” the report said.