26 Sep 2014 14:20pm
WINDHOEK, 26 SEP (NAMPA) The Ministry of Works and Transport has availed N.dollars 400 million to TransNamib for a 180-day turnaround plan which should see the State-Owned Enterprise become self-sustaining.
This was announced by TransNamib Board chairperson Dr Pieter Oosthuizen at a media briefing held in Windhoek on Thursday.
Oosthuizen said the Namibian economy cannot function without TransNamib, therefore it is imperative that the entity functions efficiently.
He stated that the new Board, which was appointed in mid-July this year, formulated a turnaround plan which had to be implemented within 60 days of the Board's appointment.
This turnaround plan will be implemented and completed within 180 days, he said.
TransNamib Board member Dantagos Jimmy-Melani said the focus areas of the plan are all short-term projects that will help ensure that the company starts to generate income.
The areas identified are the revival of the General Electric locomotives, the improvement of human capacity and operational structures, and the addressing of all operational shortfalls while aiming to reduce long-standing debt.
She added that business declined significantly over the last 30 months due to limited and unreliable locomotives.
We will refurbish and reinstate 12 General Electric Locomotives at a cost of N.dollars 60 million within 120 days, Jimmy-Melani said.
The Board member indicated that the refurbishment of the locomotives is a priority.
Regarding human capital, we as the Board have the sensitive task of improving human capacity and implementing operational restructuring for the employees that is in line with industry best practices, and TransNamib's unique needs, she said.
She noted that this has become necessary due to the required restructuring of the company as well as modernisation of equipment and technology.
Jimmy-Melani said to go through this process they will at all times work in accordance with the Namibian labour laws, and will hire a labour consultant as well as an expert in rail and transport operations to assist in the process.
She further stated that TransNamib currently has 1 683 employees.
We believe some business units are heavily capacitated. There is thus a need for outsourcing so that the company can focus on their core business, Jimmy-Melani stated.
TransNamib's rail network stretches over a distance of 2 687 kilometres.
The company has a wide distribution network with stations and depots throughout major towns in the country.