THE chairperson of the TransNamib board, Lionel Matthews, says the Ministry of Finance needs to optimally deploy N$175 million to the parastatal in the short term for it to be able to carry out some of its activities.
Matthews says the funds will be used for the current situation and proposed solutions, the purchase of shunting locomotives, wagons and tankers, and to release some locomotives for mainline use.
He was speaking at a media briefing in Windhoek yesterday.
"The proposed programme and budget is for infrastructure improvement, additional staff recruitment and training/consultancy interventions, and improving the work environment and performance of employees and more," Matthews said.
In the long term, the government plans to invest N$2,2 billion in the provision and upgrade of rail infrastructure for the 2022/23 to 2024/25 period, following on the N$1,3 billion for the 2020/21 and 2021/22 period.
This comes after the Integrated Strategic Business Plan (ISBP) confirmed an investment of N$2,5 billion is needed to execute the new TransNamib mandate, which would primarily come from recapitalisation, the selling of non-core assets, government subsidies, and vendor finance.
Matthews said these investments are managed by the Ministry of Works and Transport, as rail infrastructure is owned by the government.
"The government, through public enterprises, provided N$523,6 million over the 2022/23 to 2024/25 financial period, of which N$175 million will be made available for the 2022/23 financial year," he said.
Matthews said the main purpose of the financial allocation is to support the execution of the ISBP, and to meet at least one of the conditions of the Development Bank of Southern Africa's N$2,6 billion funding commitment.
"It was agreed with the Ministry of Finance to rework the ISBP and meet all the conditions of the DBSA and the Development Bank of Namibia's funding offer of N$2,6 billion over the next six months," he said.
Matthews said despite challenges, the government is staying true to its development objectives as it relates to transport, logistics, and infrastructure.
UNION AND PENDING INDUSTRIAL ACTION
Johny Smith, the chief executive officer of TransNamib, says the parastatal has received a petition from the Namibia Transport and Allied Workers Union (Natau), making certain demands.
This comes after employees protested in June, expressing their dissatisfaction with their working conditions.
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"The company instituted an urgent application against Natau to interdict and restrain the union from conducting industrial action in the form of a strike as planned by Natau, of which the planned commencement date was to be 18 July," he said.
Smith said both parties came to the conclusion that Natau would hold a secret ballot on 12 August on whether employees should strike or not.
"TransNamib does not have money for salary increments.
"Should employees choose to proceed with industrial action, the company will apply the no work-no pay principle during the strike period," he said.
Smith said TransNamib continues to remain in a challenging financial position due to its short-term cash-flow position, as well as its limited capacity in terms of rolling stock.
"As a company operating at a loss of more than N$10 million per month, its financial situation is precarious.
"The management of TransNamib has gone to great lengths to engage the union and our internal stakeholders on the perilous financial situation," he said.
Smith said they remain hopeful and appeal to employees to evaluate and understand the dire consequences of industrial action for the already struggling entity.
