27 Nov 2018

Botswana Railways (BR) and TransNamib Holdings Limited have signed a Memorandum of Understanding (MoU) to establish a working relationship and introduce a container terminal at Gobabis, Namibia.

Speaking at a press briefing on November 26, BR chief executive officer, Mr Leonard Makwinja said the MoU provided an opportunity to leverage on the railway infrastructure in

Namibia as well as knowledge and expertise in the dry port business.

He said the memorandum would be for nine years during which time the parties involved would explore and agree on substantive terms for carrying out the container terminal business.

Mr Makwinja noted that it was crucial to diversify the dry port business and to provide an alternative means of transporting cargo from Walvis Bay Port to Botswana and other destinations within the SADC region.

He further explained that the two parties would carry out a feasibility study to assist in determining the viability of the business, adding that based upon the results, the two parties shall enter into a substantive rail transport agreement and joint venture agreement for purposes of setting respective rights and obligations.

“I am optimistic about the future for Botswana Railways and TransNamib Holdings Limited. I sincerely believe that the synergy between the two parties will ultimately lead to an alternative route for the transportation of cargo thus providing intergraded logistics for our customers,” he said.

For his part, chief executive officer of TransNamib Holdings Limited, Mr Johny Smith said the signing of the MoU was the beginning of a fruitful and beneficial relationship to develop trade between the two economies.

He said the development of an inland terminal at Gobabis would cut down on road transport trips.

He added that the relationship between BR and TransNamib would serve as a short to medium-term opportunity to connect the two rail companies via rail-road intermodal services.

“How two rail companies can work together to stimulate trade through transport and logistics opportunities, help open up imports and exports on the Trans-Kalahari route,’’ he said. ENDS