TRANSNAMIB Holdings and Botswana Railways have signed a memorandum of understanding that will see a container terminal developed at Gobabis.
The agreement was signed in Gaborone on Monday, TransNamib's chief corporate communications officer Ailly Hangula-Paulino said in a statement released to the media on Wednesday.
"The MoU signals the beginning of a beneficial relationship to develop and enhance trade between the two countries," she added.
It was signed by TransNamib's chief executive officer Johny Smith, and Botswana Railways' chief executive officer Leonard Musa.
Hangula-Paulino said the cooperation will help open up import and export opportunities that will help unlock the value of the Trans-Kalahari route, although the two countries have not yet been linked by rail.
"This MoU will serve as the short to medium-term partnership to connect the two rail companies via rail-road intermodal services," she noted.
She explained that the intermodal linkage from Walvis Bay to Gobabis will replace the road transportation return trip, which is about 1 200 kilometres.
"This agreement serves as impetus, and should bring back life into rail again. We hope this serves as a starting point to assist the two governments to develop the Trans-Kalahari Railway project," Hangula-Paulino added.
The MoU will also help the two parties to collaborate in train plan automatisation, signalling systems, level crossings, siding connectivity, human capital-related learning and growth. - Nampa