The governments of Botswana and Namibia have expanded the scope of the Trans-Kalahari railway line project from a dedicated coal export corridor to a multisectoral project designed to unlock the potential of other economic sectors along the corridor.
The Transport minister of Botswana, Kitso Mokaila, said that the project was planned in 2010 as a 1500 km railway line for the transport coal exports from the Mmamabula Colliery, in Botswana, to the port of Walvis Bay, in Namibia. According to him, the project had been revised last year as coal prices decreased and “ruined the viability of the single-commodity railway corridor business model”. In February 2015, the development of the plan study was undertaken by a consortium of Australian firms led by Aurecon. “The study identified all the risks and challenges associated with the project, the main challenge being the low price of coal which currently renders the project nonbankable,” Mokaila said.
In 2015, the two governments expanded the project into a regional development corridor that would go beyond the construction of the railway line to include the development of sectors such as agriculture, mining, transport and logistics, manufacturing and real estate.
To date, the two countries have signed the project management agreement, identified and refurbished buildings to house the project.
Botswana had approved all policy manuals for the project and was now waiting for Namibia to do the same. A feasibility project for the economic corridor is yet to be concluded.
The corridor, that will link Botswana’s coalfields to Walvis Bay in Namibia, was estimated at USD 14.2 billion, according to Aurecon. The total value includes USD 8.6 billion for the electrification, USD 1.9 billion for above rail, and USD 3.6 billion for the port. The construction works involve earthworks, drainage, rails, track-work, bridges and tunnels.
Share on:
