TransNamib to continue making losses

TransNamib Limited Holdings is set to continue making losses in the next three years.

This follows as the government pumped N$300 million of taxpayers’ money into the company this year to cover its day-to-day operations.

Speaking during a media engagement last week, TransNamib chief executive Desmond Van Jaarsveld said the company has to revisit and change its financial parameters.

He said the company will only start to break even after getting new stock.

“We will not make profits in the next three years. We will start to break even after our new rolling stock is here,” said Van Jaarsveld.

The chief executive said the company is working to rebuild its clients’ trust.

It aims to increase the cargo it transports from 1.5 million tonnes annually to 4 million tonnes within the next five years.

“But, as a rail company, we need to re-establish the trust. We have broken and lost the trust of many of our customers but there are many customers that are standing with us,” said Van Jaarsveld.

He said the company currently has 67 locomotives, however, 80% of those locomotives are older than 50 years.

“Of this, currently about 18 to 20 are running actively. Sometimes it’s less, sometimes, not often, more,” said Van Jaarsveld.

Earlier this year, TransNamib signed a N$2.6-billion loan agreement with the Development Bank of Namibia and the Development Bank of Southern Africa, almost three years after it was announced.

Van Jaarsveld said the loan will go towards purchasing locomotives, multipurpose wagons and infrastructure development, which includes training employees on the new technology that will come with the upgrade.

He added that the company had to dish out money to repair railways after locals stole parts of the infrastructure, further leading to the deterioration of the rails.

In the last year, close to half a million has been used to repair the railways.

Van Jaarsveld said the hotspot for most of these cases of theft is the railway at Heroes Acre.

He urged those committing theft to stop as it risks lives.

TransNamib has a property portfolio of N$2.6 billion that includes tations, commercial properties and residential properties.