NAMIBIA SPOTLIGHT: EXPANDING RAIL INFRASTRUCTURE AND

ROLLING STOCK14 May 2019, Maputo

Johny M. Smith, Chief Executive Officer, TransNamib Holdings Limited, Namibia

CORPORATE INFORMATION1. SOE

• 100% owned by GRN• Rail Operations & Property service

2.Current TN PPP’s• Swakop Hotel• GPT – Sleeper factory• Namrail – Railway construction/rehabilitation

3.Rail infrastructure & Rail Operations• GRN owns rail infrastructure• TransNamib sole Rail operator

WHERE ARE WE?

NAMIBIA RAILWAY NETWORK

>2400 km

CONDITION OF RAILWAY INFRASTRUCTURE

KEY FIGURES

•1,281 employees

•Locomotive km’s pa. = 2,4m km

•Annual tonnage = 1,59 m

•Annual Turnover = N$ 486 m

•Asset value = > N$ 3 bn (Undeveloped & old)

BUSINESS PLAN1. 5 year Business plan

2. Strategic focus on rail

3. Strategic objectives

4. Action plan

5. Build culture change – employees (PMS)

STRATEGIC OBJECTIVES

ROLLING STOCK UPGRADE

Use of Funds TOTAL

All amounts in N$'mn's

Locomotives rebuild program 1 012

New locomotives 570

Signalling, tracking and ICT 351

Other capital programs 182

Maintenance backlog - rolling stock 361

Right-sizing exercise 30

Organisational change and transformation 20

Working capital 188

Total 2 714

Internal Resources 247

External Funds Required 2 466

Currentlocofleet(Operational) 43

No.oflocosrequired 55 1.5mt

No.oflocosavailable(Daily) 34

No.oflocosremanufacture 33

No.oflocosnew 10

No.oflocos(2023) 86 3.1mt

NAMIBIA RAIL CORRIDORS

RAILWAY INFRASTRUCTURE PROJECTS

•Develop Stations into transhipment/distribution hubs = PPP’s

•Walvis Bay-Kranzberg upgrade (200 km)

•Rehabilitation/Upgrade of the 42km (Sandverhaar-Buchholtzbrunn)

•Rehabilitation/Upgrade of the 200 km (Windhoek-Gobabis)

•Grootfontein-Otavi line (80 km)

COMMUTER LINE PROJECTS

•Windhoek – Okahandja (65 km)

•Windhoek – Rehoboth (80 km)

•Windhoek – HK International Airport (40 km)

•Windhoek CBD – Katutura (15 km)

NEW RAILWAY LINES CROSS BORDER PROJECTS

•Grootfontein – Katima Mulilo line - (700 km) - Connecting to Zambia

•Gobabis – Gaborone (65 km) - (200 km) - Connecting to Botswana

PROPERTY DEVELOPMENT

•Current property value = R 2.5 m

•Residential property

•Station (Logistics support projects)

•Commercial land Development

•Industrial land Development

CRITICAL SUCCESS FACTORS

• Implementation of plan

• Increase in business

• Upgrade of infrastructure

• Increase rolling stock

• Optimize Property portfolio

• Manage Corporate Governance Control

• Improve systems & processes (efficiency)

PPP PROJECTS?

1. Property

2. Station strategy

3. Logistics support & development

4. Warehousing & Distribution

THANK YOU