Namibian research firm, Simonis Storm Securities, has said that despite progress at the port and airport level, Namibia’s rail network remains the weakest link in its logistics chain.
TransNamib’s limited capacity and outdated rolling stock force most cargo onto the road network, raising transport costs, eroding competitiveness, and accelerating wear on national highways, the firm said in a report.
Namibia’s rail stretches a total length of 2,687 km across the country; only about 48% of the rail network meets the minimum SADC-stipulated standard of 18.5 tons/axle load. The remaining sections are between 16.5 and 17.5 tons/axle load, according to TransNamib’s statistics.
The firm said the government has consistently allocated far larger budgets to roads than rail, funding road maintenance and expansion, while the rail sector has been left chronically underfunded.
During the 2025/26 financial year, the government has budgeted a total of N$2.7 billion for upgrading the railway network and road construction projects.
Simonis Storm Securities said Namibia could adopt a similar approach to Transnet of South Africa by inviting private participation on priority corridors such as the Walvis Bay–Grootfontein line and the Tsumeb, Otavi and Otjiwarongo mining belt. Also, in the south, the Ariamsvlei–Lüderitz line.
The report said concession models or Public-Private Partnership (PPP) frameworks would enable new investment into track upgrades, locomotives, and rolling stock, relieving pressure on TransNamib while rapidly expanding cargo throughput.
The report said rebalancing infrastructure spending is also critical; even redirecting a portion of the billions currently allocated to roads into rail modernisation would have transformative effects.
The firm believes that a stronger rail system would lower transport costs for exporters, extend the lifespan of Namibia’s roads by reducing heavy truck traffic, and strengthen Walvis Bay’s competitiveness as a gateway of choice for regional trade.
With a stronger rail system, Namibia would not only improve its own trade efficiency but also attract hinterland volumes from landlocked neighbours seeking alternatives to congested South African ports.
Without rail reform, Namibia’s external trade will remain constrained by high road costs, border post congestion, and dependence on South African infrastructure, the report said.
With it, Namibia has the opportunity to reposition itself as a strategic logistics hub for Southern Africa under the AfCFTA, rivalling Durban and Maputo, and anchoring its trade growth on a more resilient and competitive foundation.
Written for Railways Africa by Chamwe Kaira
