Mmegi

Rail revenues reach P65m in Q1

Chugging along: Botswana Railways' revenues are being buoyed by its goods service
Chugging along: Botswana Railways' revenues are being buoyed by its goods service

Volumes and values of railed goods were up in the first quarter of the year, reaching 268,247 tonnes and P65.01 million respectively, figures from Statistics Botswana show.

The numbers compare to volumes of 251,781 tonnes and P62.3 million in the fourth quarter of last year. The improvement bodes well for Botswana Railways, the national rail carrier which has struggled to break even or move into surplus for several years. According to Statistics Botswana figures, out of the 268,247 net tonnes of goods transported in the first quarter, 77.5% comprised total imports plus Botswana-origin traffic.

Total exports made up 27.5% of the total while transit traffic and total Imports constituted 22.5% and 20.1% respectively.

The country’s major rail haulage items include fuel, coal as well as salt and soda ash.

Besides goods traffic, Botswana Railways is finalising an effort to resuscitate the passenger rail service through private sector participation. According to a notice floated in March, the rail utility is seeking service providers who can collaborate or partner in passenger rail services provision. The expressions of interest are reserved for citizen-owned companies.

Transport and Public Works minister, Molale previously told BusinessWeek that the entry of the private sector into rail services was part of a broader plan to unbundle Botswana Railways.

“Despite our small railway company, we are looking at the possibility of privatisation such that we divide it into three; the line, the running stock and the business along the rail like other railways that are building malls and other things. “They can equally build points of interest and other things along the rail line,” he said.

The passenger train service, popularly known as the Blue Train, was suspended in January 2020 due to running losses as expenses grossly exceeded the service’s revenues.
Editor's Comment
Botswana at a critical juncture

While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...

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