Namibia’s current railway infrastructure is inadequate for its fuel demand supply chains.
This has resulted in minimal volumes being transported by rail in the country.
Namibia’s reliance on rail for fuel transportation has dramatically declined from 70% a decade ago to just 14% today.
With the scarcity of pipelines, road transport has surged, leading to increased road fatalities, congestion, and emissions.
Trucks now dominate fuel transport, despite rail being a safer and more cost-effective option.
The deterioration of Namibia’s railway network has resulted in high costs and underinvestment.
Namibia also serves as a key transit route for clean products like diesel to Botswana and Zambia.
Over the past decade, the transport of clean products has grown by 21% and is projected to rise by 56% by 2040.
Specifically, Botswana’s imports from Walvis Bay are expected to increase by 152% by 2040.
To meet this growing demand, Namibia must invest in and enhance its railway infrastructure.
General Manager of Puma Energy Namibia, Adell Samuelson, is optimistic that TransNamib will use the recently secured N$2.6 billion to upgrade its locomotives and acquire additional rolling stock.
Zambia and Namibia have signed a Memorandum of Understanding to develop a pipeline that will transport 120,000 barrels of fuel per day between the two countries, thereby diversifying fuel delivery options.
Puma Energy has also proposed a rural fuel supply concept aimed at providing fuel to remote areas that currently lack access.
A CITAC report commissioned by Puma Energy has revealed challenges in the fuel supply chain across sub-Saharan Africa and pointed out opportunities to enhance energy affordability, efficiency, and security.
The report emphasises that improving efficiency and addressing energy security gaps can be achieved by increasing the use of rail transport, thereby reducing the reliance on trucks for road transportation.
This shift is especially pertinent as fuel volumes for Namibian and transit markets are expected to grow.