TransNamib to spend up to N$1.10bn to remanufacture 20 locomotives
TransNamib is expected to spend between N$1.06 billion and N$1.10 billion to remanufacture 20 locomotives, based on projected refurbishment costs of US$2.8 million to US$2.9 million per unit – roughly 60% of the cost of buying a new locomotive.
The investment forms part of the parastatal’s broader effort to restore rail capacity, improve fleet reliability and reduce long-term maintenance costs through the life extension of existing assets rather than full replacement.
TransNamib chief executive Desmond van Jaarsveld confirmed the figures during works minister Veikko Nekundi and his Botswana counterpart Noah Salakae's site visit at the company’s diesel depot in Windhoek last week.
“We initially planned to buy new locomotives, but after reviewing our options, we decided to remanufacture a large part of our fleet," Van Jaarsveld explained. "You virtually end up with a brand new locomotive, but at a fraction of the cost,” he added.
Work has already begun at the Windhoek depot, with two locomotives almost fully stripped and preparations under way for two more.
“The stripping phase is within our current capabilities, but for the rebuilding phase we will need international expertise,” Van Jaarsveld said, noting that potential partners from Asia are being considered.
New focus
Kendall Swartz, TransNamib executive for commercial and marketing, said the final ratio of new versus remanufactured locomotives will be confirmed once a rail consultant submits a report by the end of January.
“The ratio for new versus remanufactured locomotives is currently being finalised with our lenders,” Swartz said. “We still intend to order some new locomotives, but the focus is shifting towards remanufacturing to extract maximum value from our loan.”
The first phase will cover the remanufacturing of 20 of the roughly 70 older locomotives in the fleet, some of which are said to be 50 years old.
“With remanufacturing, we only reuse the chassis and bogies, and only after strict metal integrity testing. Everything else is brand new,” Swartz explained.
Funding for the initial phase has already been secured through loans from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA), with final lender discussions scheduled for early in the new year.
Skills and local capacity
Beyond immediate cost savings, TransNamib is positioning the programme as a long-term industrial and skills development project.
Van Jaarsveld said their ultimate goal is to equip the team so that within two years they can perform the full remanufacturing process.
Swartz added that skills transfer from international partners will be governed by strict service-level agreements and continuous evaluation.
“We also plan to establish a dedicated facility in Namibia to remanufacture and assemble locomotives and wagons. Eventually, we aim to offer these services to neighbouring countries, creating a regional hub for rail engineering,” he said.
As part of the long-term vision, TransNamib plans to launch a school for rail, offering accredited courses aimed at sustainable employment creation and re-establishing a centre of excellence for rail and related industries.
Burden road networks
The initiative comes amid growing pressure on TransNamib to restore rail capacity after years of operational decline, which has forced more freight onto Namibia’s road network, increasing transport costs and infrastructure wear.
Government officials have repeatedly emphasised the importance of rail in boosting trade efficiency, particularly in mining and regional transit.
For TransNamib, the remanufacturing drive represents a calculated gamble.
“It is a faster and cheaper way to renew our fleet, but success depends on execution, skills transfer and transparent procurement,” Van Jaarsveld said.
The investment forms part of the parastatal’s broader effort to restore rail capacity, improve fleet reliability and reduce long-term maintenance costs through the life extension of existing assets rather than full replacement.
TransNamib chief executive Desmond van Jaarsveld confirmed the figures during works minister Veikko Nekundi and his Botswana counterpart Noah Salakae's site visit at the company’s diesel depot in Windhoek last week.
“We initially planned to buy new locomotives, but after reviewing our options, we decided to remanufacture a large part of our fleet," Van Jaarsveld explained. "You virtually end up with a brand new locomotive, but at a fraction of the cost,” he added.
Work has already begun at the Windhoek depot, with two locomotives almost fully stripped and preparations under way for two more.
“The stripping phase is within our current capabilities, but for the rebuilding phase we will need international expertise,” Van Jaarsveld said, noting that potential partners from Asia are being considered.
New focus
Kendall Swartz, TransNamib executive for commercial and marketing, said the final ratio of new versus remanufactured locomotives will be confirmed once a rail consultant submits a report by the end of January.
“The ratio for new versus remanufactured locomotives is currently being finalised with our lenders,” Swartz said. “We still intend to order some new locomotives, but the focus is shifting towards remanufacturing to extract maximum value from our loan.”
The first phase will cover the remanufacturing of 20 of the roughly 70 older locomotives in the fleet, some of which are said to be 50 years old.
“With remanufacturing, we only reuse the chassis and bogies, and only after strict metal integrity testing. Everything else is brand new,” Swartz explained.
Funding for the initial phase has already been secured through loans from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA), with final lender discussions scheduled for early in the new year.
Skills and local capacity
Beyond immediate cost savings, TransNamib is positioning the programme as a long-term industrial and skills development project.
Van Jaarsveld said their ultimate goal is to equip the team so that within two years they can perform the full remanufacturing process.
Swartz added that skills transfer from international partners will be governed by strict service-level agreements and continuous evaluation.
“We also plan to establish a dedicated facility in Namibia to remanufacture and assemble locomotives and wagons. Eventually, we aim to offer these services to neighbouring countries, creating a regional hub for rail engineering,” he said.
As part of the long-term vision, TransNamib plans to launch a school for rail, offering accredited courses aimed at sustainable employment creation and re-establishing a centre of excellence for rail and related industries.
Burden road networks
The initiative comes amid growing pressure on TransNamib to restore rail capacity after years of operational decline, which has forced more freight onto Namibia’s road network, increasing transport costs and infrastructure wear.
Government officials have repeatedly emphasised the importance of rail in boosting trade efficiency, particularly in mining and regional transit.
For TransNamib, the remanufacturing drive represents a calculated gamble.
“It is a faster and cheaper way to renew our fleet, but success depends on execution, skills transfer and transparent procurement,” Van Jaarsveld said.
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