Business Reporter
VEIKKO Nekundi, the Minister of Works and Transport, has said that a plan by the national rail liner, TransNamib, to procure new locomotives through a N$2.5 billion loan from the Development Bank of Southern Africa has been cancelled, as the country cannot afford the procurement of locomotives from a single manufacturer considering global geopolitical tensions.
Nekundi explained that subsequent to his assumption of office as Minister of Works and Transport, his top priority was to understand the procurement of locomotives by TransNamib via the Central Procurement Board of Namibia (CPBN).
“It transpired that the procurement of locomotives was to be done via a direct procurement method through a single-source manufacturer. Considering that there is more than one manufacturer of quality locomotives, and the geopolitics of the world as is evident from unilateral sanctions and overnight tariffs from the superpowers of the world, it would be too risky to procure locomotives from one manufacturer without competition,” Nekundi said.
He added that after consultations with relevant stakeholders, and in line with the Procurement Act, Act 15 of 2015, Section 54, 1 (g), which states that the board or a public entity may at any time prior to acceptance of the bid reject all bids or cancel the bidding process, a strategic decision was made to cancel the bidding process. “As the line ministry, I have directed TransNamib to cancel the procurement process and commence with a procurement process that embraces other procurement avenues. We do not embrace procuring from a single manufacturer,” Nekundi said.
He added that the 23 new General Electric diesel locomotives will now be procured through a process that explores various supplier options that are technically compliant and can adapt to the climatic conditions of Namibia.
“Having a single supplier exposes Namibia to current and future trade wars as well as unilateral sanctions, which can put the country’s sovereignty at stake,” Nekundi said.
Earlier this year in February, President of the Affirmative Repositioning (AR) movement, Job Amupanda, alleged that the acquisition of the 23 new locomotives was a “last-minute corrupt deal” and called for the cancellation of the acquisition. Amupanda said the process lacked transparency and was being rushed to benefit “white interests” before the new administration takes office in March 2025.
TransNamib Chief Executive Desmond van Jaarsveld, however, denied these accusations, saying that the procurement process was handled by the procurement board and that it had been initiated as far back as 2022, and was not a rushed process.
Van Jaarsveld said over the last 50 years, TransNamib’s fleet had predominantly featured General Electric/Wabtec locomotives, which have proven to be exceptionally reliable in Namibia’s harsh environmental conditions.
He added that in light of these advantages, the decision to standardise the fleet with General Electric/Wabtec locomotives was made by TransNamib.
“Standardisation ensures operational efficiency, reduced maintenance costs, improved reliability, and faster service, amongst other benefits. Sourcing directly from the manufacturer will eliminate the need for a third-party agent and will facilitate the building of a direct relationship with the manufacturer,” Van Jaarsveld said.
He added that TransNamib’s board approved the standardisation initiative in 2022, and subsequent approvals were granted by lending institutions and the Ministry of Finance and Public Enterprises.
Photo: TransNamib
