Decreased global prices for coal have raised concerns about the viability of the proposed Trans-Kalahari railway from Botswana’s coalfields to Walvis Bay. Undeterred, the governments of both countries are pushing ahead with the project.
The cost of the proposed new railway was estimated at USD15 billion in the feasibility study, but is likely to cost more. Doubts about private investors having means to raise USD15 billion or more are aggravated by the fact that they can expect no government guarantees. Aurecon, the Australian project consultant, estimated capital expenditure at a total USD14.2 billion comprising USD8.6 billion for electrified rail, USD1.9 billion for above rail, and USD3.6 billion for the port.
The construction works involve earthworks, drainage, rails, trackwork, bridges and tunnels, expected to be complete by 2019.
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