Large-Scale Rail Infrastructure for Cargo

Abandoned Garub Railway Station in Namibia located in the Namib desert on the road to Luderitz.

Photo by Nick Fox / Shutterstock

Large-Scale Rail Infrastructure for Cargo
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Transportation
Land Transportation
Business Model Description

Upgrade existing rail infrastructure to provide improved and additional freight transportation capacity.

Expected Impact

Increase capacity and improve efficiency of freight transportation, and reduce negative impact of cargo on environment.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Namibia’s railway network transports 1.2 billion tonne-kilometres of cargo annually.
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Decent Work and Economic Growth (SDG 8) Life on Land (SDG 15)
Sector Sources
  • I) Harambee Prosperity Plan II, 2021-2025, Republic of Namibia, https://www.met.gov.na/files/downloads/f0b_Harambee%20Prosperity%20Plan%20II.pdf. II) EU-Africa Infrastructure Trust Fund, 2013, https://www.eu-africa-infrastructure-tf.net/attachments/Publications/itf_flyer_namibia_2013_en_4.pdf. III) Master Plan for Development of an International Logistics Hub for SADC Region in the Republic of Namibia, Final, National Planning Commission, 2015, https://www.npc.gov.na/?wpfb_dl=224. IV) Schwab, K, World Economic Forum, 2019, The Global Competitiveness Report 2019, http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf. V) The African Continental Free Trade Area, Economic and Distributional Effects, The World Bank Group, 2020, https://openknowledge.worldbank.org/bitstream/handle/10986/34139/9781464815591.pdf.
IOA Sources
  • 1) Erongo, 2020, Effective rail infrastructure a must, https://www.erongo.com.na/news/effective-rail-infrastructure-a-must-2020-03-10. 2) Ministry of Works, Transport and Communication, 1995, White Paper on Transport Policy. GRN, https://transcomreform.seydack.org/Other%20Key%20Documents/04%20Final%20White%20Paper%20June%201995.pdf. 3) Old Mutual, 2021, Investing in infrastructure, https://www.oldmutual.com.na/old-mutual-investment-group/alternative-investments/midina. 4) Namport, 2021, Namport continues to be the preferred seaports in Africa, https://www.namport.com.na/news/907/Namport-e-Newsletter. 5) National Planning Commission of Namibia, 2021, Harambe Prosperity Plan 2. 6) Walvis Bay Corridor Group, 2021, Walvis Bay Corridor Group: About us, http://www.wbcg.com.na. 7) African Development Bank, 2017, Transport Infrastructure Improvement Project (Phase I): Railway Line Upgrading - Walvis Bay to Kranzberg, https://www.afdb.org/fileadmin/uploads/afdb/Documents/Environmental-and-Social-Assessments/Namibia_-_Transport_Infrastructure_Improvement_Project_final_ESIA_Summary.pdf. 8) EOS Capital, 2021, About EOS Capital, https://www.eoscapital.com.na. 9) Monasa / UNDP Interview with Government Institution Pension Fund of Namibia, 2020. 10) National Transport Services Holding Company Act, 1998, Republic of Namibia, https://laws.parliament.na/annotated-laws-regulations/law-regulation.php?id=226. 11) Namibian Transport Advisory Board Act, 1991, Republic of Namibia, https://laws.parliament.na/annotated-laws-regulations/law-regulation.php?id=225. 12) Road Traffic and Transport Act, 1999, Republic of Namibia, https://laws.parliament.na/annotated-laws-regulations/law-regulation.php?id=189. 13) Road Fund Administration Act, 1999, Republic of Namibia, https://laws.parliament.na/annotated-laws-regulations/law-regulation.php?id=188. 14) Roads Ordinance 17, 1972, Republic of Namibia, https://laws.parliament.na/annotated-laws-regulations/law-regulation.php?id=193. 15) TransNamib, https://www.transnamib.com.na.