TransNamib, Namibia’s national railway, has awarded a contract worth about N$7 million to Namibia Road Products (NRP) for the construction of a railway siding and on-site permanent way at the “multi-billion-dollar” Ohorongo Cement factory near Otavi.
According to New Era, published in Windhoek, the German-owned factory entered an agreement with TransNamib in December 2009, in terms of which the railway would deliver commodities to and from the factory. Cement production is due to start in January 2011. As part of the arrangement, TransNamib is to construct a private railway siding to the factory.
TransNamib, after publicly soliciting expressions of interest for the construction of the railway extension to the cement factory, has now appointed NRP to undertake the work. NRP contract engineer Ferdinand Nghiyolwa says it will be completed in “five to six months.”
Construction of the Ohorongo factory is at an advanced stage and the transport of coal to the site is expected to start in September.
Valued at N$2.5 billion, Ohorongo remains the largest direct investment in Namibia by a Germany company, and will be the third largest foreign investment in the country after the projected N$5.8 billion investment by French mining firm Areva and the N$3.2 billion invested by Skorpion Zinc a few years ago.