Namibia's national rail operator has launched what is called the 'TransEvaRail Pricing Strategy Project'.
TransNamib corporate communications manager Abigail Raubenheimer said the initiative sought to collect valuable insights and feedback to guide TransNamib’s pricing decisions.
The main objective of the project is to review and update the operator’s current pricing strategy to align better with market conditions, benchmark against industry standards, and potentially increase revenue.
Raubenheimer stated that TransNamib was gathering detailed insights and feedback through workshops and other methods.
The company anticipates that this approach will help develop a pricing strategy that meets customer needs and ensures the long-term sustainability of its operations.
Raubenheimer emphasised that the goal was to adopt pricing strategies that were beneficial for all stakeholders and to promote sustainable business practices.
Funded by German government development agency GIZ Namibia, the project entails the appointment of a consultant in May to carry out the project, with a completion target set for the end of July.
Current cash flow constraints prohibit TransNamib from financing the study independently.
GIZ is funding the entire study.
It is expected to provide TransNamib with the data necessary to potentially restructure its pricing strategies for the company's benefit.
Raubenheimer explained that efficient pricing structures involved developing strategies that were competitive and sustainable.
This includes market alignment to ensure prices reflect current market conditions and are competitive with similar services, and cost recovery to set prices that cover service provision costs, including maintenance, operations, and equipment investments.
Revenue optimisation will identify ways to maximise revenue without deterring customers, such as dynamic or tiered pricing models.
Additionally, customer value will ensure fair pricing that matches the quality and reliability of services.
Another aspect is simplicity and transparency, creating a pricing structure that is easy for customers to understand and transparent in its application, reducing confusion and building trust.
Flexibility will allow TransNamib to adjust prices based on demand, seasonality, or other market factors, ensuring competitiveness and responsiveness to changes.
Raubenheimer said that efficient pricing structures involved developing a balanced and strategic approach that supported TransNamib’s financial health while meeting customer needs and expectations.