Namibia plans railway revamp to boost regional coal exports
TransNamib plans to move about 50,000 tonnes of coal a month off trucks and on to trains at Gobabis, a town in eastern Namibia 110km from the Botswana border and about 600 kms from Walvis Bay.
25 November 2022 - 18:18
byWendell Roelf
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Namibia's state-owned railway company TransNamib plans to shift coal exports from Botswana off the road and onto rail by early next year, potentially doubling exports via Walvis Bay port, its CEO said.
Land-locked Botswana has sought alternative routes to export its coal as disruption to South Africa’s railway lines impact the commodity’s route to Richards Bay port, the largest coal terminal in Africa.
Demand for coal from Botswana, South Africa, and elsewhere has surged since the EU placed sanctions on Russian coal. But those seeking to profit in the region face big logistical challenges, with many currently trucking the fossil fuel hundreds of kilometres to ports, a costly and inefficient exercise.
“As the railways, we are looking at a short-to-medium-term solution to move coal in Namibia by rail,” said Johny Smith, CEO of TransNamib. Shifting to rail would cut transportation costs and enable miners to export more.
TransNamib plans to move about 50,000 tonnes of coal a month off trucks and on to trains at Gobabis, a town in eastern Namibia 110km from the Botswana border and about 600 kms from Walvis Bay.
Trucks would still have to carry coal from mines in Botswana to Gobabis, though.
“We see first shipments from Gobabis to Walvis Bay via rail by February or March of next year,” Smith said. “We see it increasing to maybe 100,000 tonnes or more, it's just putting the capacity there from a rail perspective.”
TransNamib is getting a R2bn loan from the Development Bank of Southern Africa (DBSA) and the Namibian Development Bank, Smith said, to buy about 20 new locomotives and 300 wagons, some of which would be used on the Gobabis rail line.
A spokesperson for the DBSA said the loan would be finalised by the end of March 2023.
The Southern African Railway Association said it was in discussions with the EU and others about railway investments in the region, including a planned “EU-Africa Global Gateway Investment Package”.
The EU did not immediately respond to a request for further information.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Namibia plans railway revamp to boost regional coal exports
TransNamib plans to move about 50,000 tonnes of coal a month off trucks and on to trains at Gobabis, a town in eastern Namibia 110km from the Botswana border and about 600 kms from Walvis Bay.
Namibia's state-owned railway company TransNamib plans to shift coal exports from Botswana off the road and onto rail by early next year, potentially doubling exports via Walvis Bay port, its CEO said.
Land-locked Botswana has sought alternative routes to export its coal as disruption to South Africa’s railway lines impact the commodity’s route to Richards Bay port, the largest coal terminal in Africa.
Demand for coal from Botswana, South Africa, and elsewhere has surged since the EU placed sanctions on Russian coal. But those seeking to profit in the region face big logistical challenges, with many currently trucking the fossil fuel hundreds of kilometres to ports, a costly and inefficient exercise.
“As the railways, we are looking at a short-to-medium-term solution to move coal in Namibia by rail,” said Johny Smith, CEO of TransNamib. Shifting to rail would cut transportation costs and enable miners to export more.
TransNamib plans to move about 50,000 tonnes of coal a month off trucks and on to trains at Gobabis, a town in eastern Namibia 110km from the Botswana border and about 600 kms from Walvis Bay.
Trucks would still have to carry coal from mines in Botswana to Gobabis, though.
“We see first shipments from Gobabis to Walvis Bay via rail by February or March of next year,” Smith said. “We see it increasing to maybe 100,000 tonnes or more, it's just putting the capacity there from a rail perspective.”
TransNamib is getting a R2bn loan from the Development Bank of Southern Africa (DBSA) and the Namibian Development Bank, Smith said, to buy about 20 new locomotives and 300 wagons, some of which would be used on the Gobabis rail line.
A spokesperson for the DBSA said the loan would be finalised by the end of March 2023.
The Southern African Railway Association said it was in discussions with the EU and others about railway investments in the region, including a planned “EU-Africa Global Gateway Investment Package”.
The EU did not immediately respond to a request for further information.
Reuters
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