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The government has been urged to invest in locomotives while refurbishing the rail network.
The lawmakers recommended that national railway operator TransNamib specialize in the transportation of hazardous and heavy goods and adopt several intervention measures to restore profitability.
The recommendation is contained in a report by the parliamentary standing committee on economy and public administration.
Lawmakers said limiting the movement of hazardous and heavy goods would also help protect the nation’s roads.
“Taking full advantage of this potential is essential for profitability. Consideration should be given to amending legislation to facilitate the transport of hazardous and heavy goods by rail. This is intended to protect the country’s roads and enhance freight transport, especially when TransNamib has the capacity to handle more cargo,” the report reads.
“Given the convenience of freight transport, TransNamib Holdings Limited (TNHL) has strong commercial potential.”
The government was also pleaded to invest in locomotives while refurbishing the railway network.
Overcoming problems
“To restore profitability, TNHL needs to address challenges associated with competition from road transport. This involves overcoming issues associated with old and unreliable rolling stock and rail infrastructure. The government must ensure adequate investment in the railway sector at this time due to the emergence of oil, gas and green hydrogen markets,” the report reads.
The commission said the investment was necessary to ensure the corridor operated at full capacity.
The government was asked to actively consider guaranteeing the N$2.6 billion loan sought by the railway operator from the Development Bank of Southern Africa (DBSA) in 2022. The MPs encouraged that the proceeds of the loan be used to acquire and upgrade locomotives.
“The loan will be used to purchase 20 to 25 locomotives, rebuild 10 locomotives, buy 300 freight cars and tankers, upgrade workshops and equipment, and provide necessary training,” the report said.
The most important aspects
Another factor hindering TransNamib’s success is ensuring that employees are paid to improve profitability, the report said.
“The most important factor in TNHL’s success is its people. It is important to recognise that TNHL is more than just infrastructure and assets, it is a company driven by its people.
“Empowering and enabling the workforce, as well as ensuring fair compensation, are critical steps toward profitability,” it reads.
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