Namibia’s Rail Transport Market Share Declines Due to Lack of Rolling Stock

(3 Minutes Read)

The AfDB noted that with only 15 trains operational daily out of the 32 required, the rail industry faces significant challenges in meeting freight demand despite growing interest from potential clients.

According to the African Development Bank (AfDB), Namibia’s rail transport market share has declined to 12% annually due to a shortage of 17 locomotives.

The AfDB noted that with only 15 trains operational daily out of the 32 required, the rail industry faces significant challenges in meeting freight demand despite growing interest from potential clients.

Meanwhile earlier this month, TransNamib revealed that it is set to invest N$1.7 billion to purchase 23 new locomotives, as part of a major fleet upgrade aimed at boosting the country’s rail transport capabilities. The company will also spend N$311 million to rebuild seven existing locomotives, a process that involves dismantling and refurbishing each one to extend its operational lifespan by another 20 years.

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In 2023, the AfDB approved a USD196.43 million loan to Namibia, covering 51.8% of the Transport Infrastructure Improvement Project (TIIP) Phase II, with the government providing the remaining 48.2%.  As part of the project, the AfDB’s support will have upgraded 417km of rail to bolster trade competitiveness in Namibia and the southern African region.