TransNamib in N$140 million deal with China

Transnamib acting CEO, Hippy Tjivikua

National railway carrier, TransNamib inked an agreement with China Railway Materials (CRM) Hong Kong for the acquisition of 90 sulphuric acid rail tankers worth approximately N$140 million (USD 10 million).

The acting CEO of Transnamib, Hippy Tjivikua and Chairman of the Board of Directors of CRM Hong Kong, Hu Zhengyong, signed the agreement last week in Windhoek.
According to the purchase agreement, TransNamib will acquire 90 sulphuric acid rail tankers from China Railway Materials in Hong Kong with the delivery expected in July 2016.
The tankers are made according to the specifications of the Dundee Precious Metals Tsumeb acid plant to maximize operational efficiency and safety.
This acquisition follows a previous successful purchase of tankers from CRM Hong Kong, which are still being used by TransNamib servicing its customers.
Like the six locomotives TransNamib recently acquired from General Electric, the 90 sulphuric acid tankers will be deployed to execute the 10-year sulphuric acid rail transport agreement TransNamib entered into with Dundee Precious Metals Tsumeb.
Tjivikua said, “Dundee Precious Metals Tsumeb has approved the technical specifications and quality of the tankers and they are quite happy to receive the delivery as promised by China Railway Materials Hong Kong by July 2016.”
Following a rigorous procurement process which started about three years ago, the negotiations and development of the purchase agreement was sanctioned by the TransNamib governance structures.
“Our shareholder, the government through the Ministry of Works and Transport supported the process and acquisition of the 90 sulphuric acid rail tankers and we regard our partnership with our shareholder as healthy as ever,” Tjivikua said.
He said,“The execution of this agreement is an important milestone in fulfilment of TransNamib’s obligations to transport sulphuric acid from Tsumeb to Arandis as part of our 10 years agreement with Dundee Precious Metal Tsumeb,” the Acting CEO of TransNamib mentioned.
The Chairman of CRM Hong Kong expressed satisfaction with the relationship his company has with TransNamib. “Our relationship comes a long way and TransNamib has already bought good quality wagons from China Railway Materials before and we are pleased to learn that TransNamib is indeed satisfied with the wagons. We want to assure the Namibian public that these 90 sulphuric acid rail tankers will be of excellent quality and TransNamib will receive the return on this invest,”said Zhengyong.
Meanwhile earlier in July, TransNamib’s Train 2703 with two Class 34 locomotives carrying a load of 20 sulphuric acid tankers set for Rio Tinto’s Rössing Uranium mine derailed at point 176 en-route from Walvis Bay to Arandis, but according to sources no injuries or damages were incurred.