TransNamib gets N$2.5bn

14 October 2019 | Transport

TransNamib CEO Johny Smith says Namibian and southern African development banks have approved funding of N$2.5 billion for the parastatal's ambitious business plan that was approved by cabinet in December 2018.

Smith says the aim is to make TransNamib profitable within two years and to double its revenue, which currently stands at half a billion per year.

The second strategic objective is to increase freight movement from about 1.5 million tonnes to 3 million tonnes - which means doubling the current eight daily trains.

According to Smith the main challenges holding back the state-owned entity are a lack of locomotives and a poor cash flow which is not enough to sustain the business.

Smith says by the fifth year of the business plan they will require 86 locomotives in order to carry the envisaged three million tonnes of freight.

“We leased 17 locomotives from TransNet but we decided to give them back because of the way the contract was signed,” he says.

The company has managed to reduce its operational losses from an average of N$25 million to less than N$10 million per month.





According to Smith, the slow public procurement process is a big headache. TransNamib's procurement of locomotives has been held up for seven months by the Central Procurement Board, he added.

“It is not moving at all. I have even written them a letter last week. There is communication but there are just delays and most of the time they do not explain why, which makes it very difficult.”

TransNamib, which has had its fair share of financial and management troubles, is currently managing an asset base of more than N$3 billion but most of the assets have not been maintained and need attention, he adds.

Smith also said the parastatal has a major deficit in progressive, young professionals, although there are many skilled employees.

“We have to find a path to transfer those skills to the young people but then also there must be a transformation for technology and innovation. That is why we have created a portfolio for innovation and also introduced a project that helps us to relook at the way we do business and how to improve the processes,” he said.

Smith also expressed disappointment at the “rumour-mongering” culture that has taken root in the company over the years.

“For seven years there was no internal communication, no one sent out information to the staff.

“It was unbelievable, for seven years no one communicated and everyone made up their own stories.

“Most of them came in for maybe five to ten minutes and some did not even show up for a week. And you would think the supervisor would check up on them? No, the supervisors also do the same,” he said.

[email protected]

JEMIMA BEUKES

Similar News

 

Calle clips Air Namibia's bailout wings

3 weeks ago - 24 October 2019 | Transport

Air Namibia will have to fend for itself after finance minister Calle Schlettwein said government cannot afford to give in to the airline's demands for...

Air Namibia a hard sell - Jooste

4 weeks ago - 16 October 2019 | Transport

Public enterprises minister Leon Jooste says Air Namibia may not be an easy sell, even if the government were to consider selling the embattled airline.This...

Namibia gets ICAO safety certificate

1 month - 15 October 2019 | Transport

Namibia received the International Civil Aviation Organisation (ICAO) President Certificate in Aviation Security at the organisation's 40th general assembly held in Montreal, Canada, in late...

TransNamib gets N$2.5bn

1 month - 14 October 2019 | Transport

TransNamib CEO Johny Smith says Namibian and southern African development banks have approved funding of N$2.5 billion for the parastatal's ambitious business plan that was...

HKIA upgrades start, finally

1 month - 17 September 2019 | Transport

The handling capacity of Hosea Kutako International Airport will be doubled by a N$250 million project starting next week to eliminate congestion at Namibia's flagship...

Air Namibia appoints new board chair

2 months ago - 11 September 2019 | Transport

Existing Air Namibia board member Escher Luanda has been announced as the new board chairperson of the embattled national air carrier. Luanda was announced as...

NamPort 'within ambit of ECC'

2 months ago - 05 September 2019 | Transport

NamPort says no dust was generated by the transportation of manganese ore on uncovered rail wagons through Lüderitz to the harbour.The parastatal reacted to an...

Bell tolls for Air Nam

2 months ago - 02 September 2019 | Transport

Liquidated Belgian aviation firm Challenge Air SA says it is growing impatient at Air Namibia's failure to settle a N$400 million suit over the lease...

SA trucker strike called off?

2 months ago - 02 September 2019 | Transport

There seems to have been an agreement to halt the trucker strike that was slated to take place today in South Africa, according to a...

Illicit second-hand vehicles to be disposed of

2 months ago - 02 September 2019 | Transport

Cabinet has approved the disposal of illicit vehicles that were destined for the Namibian market without proper customs clearance.This will be done in accordance with...

Latest News

A fish rots from the...

16 hours ago | Columns

“A lie can travel half way around the world while the truth is putting on its shoes,” Mark Twain once said.In the end, truth will...

Namcor ready to run fuel...

16 hours ago | Business

The Petroleum Corporation of Namibia (Namcor) expects to take delivery of the strategic fuel storage facility next month, a company official has told Namibian Sun....

How the 'sharks' were netted

16 hours ago | Fishing

An international scandal has erupted with an exposé of more than 30 000 documents released by WikiLeaks which show that an Icelandic fishing company, SAMHERJI,...

NSFAF explains payment woes

16 hours ago | Education

The Namibia Student Financial Assistance Fund (NSFAF) has blamed the delayed payment of non-tuition fees to students on the unavailability of funds and its internal...

Hospital ­denies Itula ­allegation

16 hours ago | Health

The regional directorate of health for Ohangwena has denied an allegation by independent presidential candidate Panduleni Itula that a patient at Eenhana district hospital had...

Devil's claw under threat

16 hours ago | Environment

The increase in illegal grazing in the Nyae Nyae Conservancy and Community Forest, as well as illegal fences in the N#a Jaqna Conservancy and Community...

More dark days ahead

16 hours ago | Sports

The Fifa normalisation committee says it still has to consult its lawyers before making a decision on the way forward for the Namibia Premier League...

Mining tourney hailed as a...

16 hours ago | Sports

A three-day tournament that featured different mining employees from across the country, which took place at Otjiwarongo from Friday to Sunday, has been described as...

They have to go, says...

1 day - 13 November 2019 | Crime

Staff ReporterHighly placed sources indicated this morning that President Hage Geingob is planning to jettison justice minister Sacky Shanghala and fisheries minister Bernhardt Esau from...

Load More