Investment in rail makes sense over long distances

Intermodal alternative adds flexibility ED RICHARDSON NAMIBIA is investing in rail infrastructure and the replacement of aging rolling stock in order to bring down transport logistics costs over the vast distances that have to be covered through the country and to some neighbouring states, says Brian Black, former general manager: marketing and sales of TransNamib Holdings. TransNamib is a government-owned, self-funding parastatal which specialises in the transportation of bulk and containerised freight for the Namibian and regional markets. Its road operation in South Africa covers 600 collection points, all of which link to the company’s main hubs in Cape Town, Durban and Johannesburg with a transhipment station at Upington. Services include bulk freight for a wide range of industries, priority freight, overnight express and doorto- door collection and delivery of containers. In July 2006, the northern rail link extension of 246 kilometres from Tsumeb to Ondangwa in northern Namibia was officially commissioned. Through these facilities, the company is now in a position to transport any bulk commodities up to 60km from the Angolan border. Phase two, involving the remaining 60 km rail link between Namibia and Angola, is currently under construction and is expected to be completed before the end of 2008, says Black. The rail link, which connects both the port of Walvis Bay and South Africa to the Angolan border, is a viable alternative to road over the long distances of the trans-Cunene corridor, according to Black. The establishment of a container hub in Ondangwa means that freight is currently transported over much shorter distances by road to Oshikango at the Angolan border, but once phase two is completed, it will be rail all the way from either the port of Walvis Bay or Nakop or Upington in SA. Phase three is the establishment of a rail link between Ondangwa and Oshakati, the capital of northern Namibia. It is the biggest town in northern Namibia. According to Black, the region offers a number of opportunities to retailers, building and construction companies and local manufacturers. All of these need reliable and cost-effective transport links. As a multi-modal company, TransNamib also offers a combination of road and rail, or road-only services, covering all major towns within Namibia. It is a combination which is working for the company. “We have gone from making a loss to declaring a surplus in the past three years. Last year we made R22-million operating profit, even though we continued to invest in the replacement of aging rolling stock and much-needed rail infrastructure and equipment. We are also confident that the same results will be repeated this year,” he says.