Coffee with the CEO Webinar | Transport

Evolution

28.09.2020

TRANSNAMIB AFTER COVID 19

WHERE ARE WE?

1. 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

CORPORATE INFORMATION

•1,400 employees

•Locomotive km’s pa. = 2,4m km

•Annual tonnage = 1,6 m

•Annual Turnover = R517 m

•Asset value = > R3.2 bn (Undeveloped & old)

KEY FIGURES

•Transport & logistics one key pillars of NDP 5

•Namibia developed various transport corridors into Africa

• Walvis Bay-Ndola-Lubumbashi Corridor

• Trans Kalahari Corridor

• TransCunene Corridor

• Direct rail links to RSA & Angola (Namibia side)

•GRN investments in WB Port expansion & fuel storage

•Dry ports for Botswana, Zimbabwe and Zambia at WB Port

•TN is the sole railway operator in Namibia

•Rail required for Namibia to benefit from these investments

NATIONAL PERSPECTIVE

1. NAMIBIA RAILWAY NETWORK

CONDITION OF RAILWAY INFRASTRUCTURE

1. Speed restrictions.

2. Road vs rail capital and maintenance cost

NAMIBIA RAIL CORRIDORS

No. of trains

1. Station to Station

2. Active engagement

with clients

3. Increase volumes

4. Build block/scheduled

trains

NO. OF LOCO’S

Currentlocofleet(Operational) 43

No.oflocosrequired 55 1.5mt

No.oflocosavailable(Daily) 34

No.oflocosremanufacture 33

No.oflocosnew 10

No.oflocos(2023) 86 3.1mt

Currentlocofleet(Operational) 43

No.oflocosrequired 55 1.5mt

No.oflocosavailable(Daily) 34

No.oflocosremanufacture 33

No.oflocosnew 10

No.oflocos(2023) 86 3.1mt

1. 5 year Business plan

2. Strategic focus on rail

3. Strategic objectives

4. Action plan

5. Build culture change – employees (PMS)

RAIL BUSINESS PLAN

STRATEGIC OBJECTIVES

STRATEGIC OBJECTIVES

1.Upgrade rail infrastructure by 770 kilometre to SADC standard

• 770 km to be done

2.PPP’s to be developed for commuter train services

•Windhoek Central and Katutura/other suburbs

•Windhoek and Rehoboth

•Windhoek and Okahandja

•Windhoek and Hosea Kutako International Airport

3.Construction of railway between Ondangwa-Oshakati

• 30 km to be done

4.Construction of railway between Grootfontein-Katima Mulilo

• 700 km to be done to connect Namibia with Zambia border

5.Construction of railway between Gobabis-Gaborone

• 200 km to be done to connect Namibia with Botswana border

NEXT 5 YEAR GOALS – RAIL SECTOR - Railway upgrades

INTERMODAL CONNECTIONS

Inland Hub

Satellite Hubs

Absorption of

Labour Force

Future

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2019 2020 2021 2022 2023

Revised ISBP Volumes

ISBP Volumes Forecast volumes

FORECAST BUSINESS GROWTH

12%

44%

-400

-300

-200

-100

0

100

200

2018 2019 2020 2021 2022 2023

Forecast vs ISBP

ISBP net profit Forecast profit

FORECAST FINANCIAL PEFORMANCE

SHORT TERM NEEDS

1.N$ 200 m working capital

2.Rehabilitate >10 loco’s

3.Rehabilitate wagons

4.Major rail line repairs in critical sections

5.Capacity to boost revenues

MEDIUM & LONG TERM STRATEGY

1.Build a sustainable rail operator

2.Successful Road to Rail strategy

3.Develop PPP’s for commuter rail lines

4.Upgrade rail network to SADC standard

5.Develop rail line to Botswana/Zambia

• TransNamib 5 year plan = N$ 2.6 billion

• Complete upgrade of railway network = N$ 15

billion

10 POINT ACTION PLAN

1.Approval/Implementation of ISBP

2.Sourcing of funding

3.Building rolling stock capacity & Technology update

4.Road to rail strategy

5.Build block trains

6.Expand services to railheads/SADC countries

7.Strategic partnerships with oil industry/companies

8.Leverage on our property portfolio

9.Growing volumes & revenue

10.Becoming profitable

THANK YOU