Identifier
Created
Classification
Origin
09WINDHOEK38
2009-02-04 15:27:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Windhoek
Cable title:  

NAMIBIA: TURBULENT SKIES AND RICKETY RAILS

Tags:  ASEC EAIR ECON ELTN PGOV WA 
pdf how-to read a cable
VZCZCXRO2900
PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHWD #0038/01 0351527
ZNR UUUUU ZZH
P 041527Z FEB 09
FM AMEMBASSY WINDHOEK
TO RUEHC/SECSTATE WASHDC PRIORITY 0321
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY
UNCLAS SECTION 01 OF 03 WINDHOEK 000038 

SENSITIVE
SIPDIS

DEPARTMENT PASS TO DOT/FAA FOR CONNIE WILSON HUNTER
DEPARTMENT PASS TO USTDA FOR KATHRYN DORMINEY

E.O. 12958: N/A
TAGS: ASEC EAIR ECON ELTN PGOV WA
SUBJECT: NAMIBIA: TURBULENT SKIES AND RICKETY RAILS

Summary
- - - -

UNCLAS SECTION 01 OF 03 WINDHOEK 000038

SENSITIVE
SIPDIS

DEPARTMENT PASS TO DOT/FAA FOR CONNIE WILSON HUNTER
DEPARTMENT PASS TO USTDA FOR KATHRYN DORMINEY

E.O. 12958: N/A
TAGS: ASEC EAIR ECON ELTN PGOV WA
SUBJECT: NAMIBIA: TURBULENT SKIES AND RICKETY RAILS

Summary
- - - -


1. (SBU) A recent spate of small aircraft accidents has
highlighted the poor state of the Namibian private aviation
sector. Industry insiders point to the lack of proper
oversight as a key weakness. Members of the Directorate of
Civil Aviation (DCA) acknowledge that they lack sufficient
air traffic controllers, inspectors, and other critical
personnel to carry out the DCA's mission of regulating
Namibia's aviation industry. While some charter airlines and
private pilots clamor for greater oversight, others take
advantage of the vacuum raising the risk of more serious
accidents. The installation (in 2010) of the country's first
aviation radar system may bring some needed relief. But, the
lure of better-paying jobs overseas for Namibia's few
qualified air traffic controllers presents the DCA and the
industry in general a much tougher challenge to overcome. As
tourism plays an increasingly vital role in the economy,
Namibia can ill afford a major aviation accident.


2. (SBU) Aircraft accidents always grab the headlines, but
problems on the railways are now creeping up to the front
pages. A creaking rail infrastructure, new Chinese
locomotives out of service for over three years, and lack of
planning could potentially derail one of the Namibian
government's (GRN) major economic development plans. The GRN
wants to transform the port of Walvis Bay into a major
transshipment hub for all of southern Africa. However, as
the port expands the current rail infrastructure will not be
able to carry the load. The rail system and state-owned rail
company TransNamib suffer from political interference, lack
of expertise, and inadequate funding. The GRN is seeking
experienced foreign railway planners to draw up the master
plan required to turn Namibia's rickety rails into the modern
rail infrastructure it needs to carry the region's cargo.
Nevertheless, the GRN still prohibits foreign companies from
investing in state-owned enterprises. Foreign experts will
likely shy away from trying to help TransNamib if the company

remains hamstrung by investment restrictions and government
interference.
End Summary.

A Bumpy Start for the New Year
- - - - - - - - - - - - - - - -


3. (U) The new year has just begun, but Namibia has already
witnessed two small aircraft accidents. A Cessna 172 crashed
in a Windhoek neighborhood on January 7, and both pilot and
passenger escaped with minor injuries. On February 3, a
Jairibu 400 crashed shortly after take off from Windhoek's
Eros airport. The pilot, with 35 years experience, and the
passenger sustained severe injuries and remain hospitalized.
There were six significant aircraft accidents in 2008, the
most serious a January 11 crash which killed five passengers
and the pilot. According to the Directorate of Civil
Aviation (DCA),air incidents have risen steadily since 2005,
when there were 78 cases. In 2006 there were 83 cases, and
89 in 2007. The DCA claims human error contributed to most
incidents.

Controllers Wanted and Radar Too!
- - - - - - - - - - - - - - - - -


4. (SBU) According to several aviation charter company
operators, Namibia lacks sufficient numbers of air traffic
Controllers, aircraft inspectors, and trained aircraft
mechanics. Ray Rothlisberger, CEO of Sefofane, one of the
larger charter companies, told econoff that the DCA has "no
teeth and no people." Rothlisberger stated that seven of 28
air traffic controllers had resigned in 2008, most going to
South Africa and Dubai for better pay. Even with all 28
controllers, the DCA was understaffed. Harold Hange,
President of the Namibia Air Traffic Controller's Association
(NAMATCA) in a recent press interview echoed the comments of
the charter companies, stating "We should have a staff of 60
air traffic controllers working our country's airports, but
we only have 22." He added that controllers must work 12-14
hour shifts, while guidelines state shifts should not exceed
eight hours. Hange noted controllers can earn three to four
times as much in South Africa as they do in Namibia.


5. (SBU) Minister of Works and Transport Helmut Angula
announced on December 9, shortly before an ICAO team was
arriving in Namibia for a routine inspection, that the
government had approved the purchase of a radar system.
According to a January 16 press release, the French company
Thales announced it had been selected to be the prime
contractor for the modernization of Namibia's Navigation

WINDHOEK 00000038 002 OF 003


Surveillance and Air Traffic Management capabilities. The
contract is estimated to be worth USD $17.5 million. The GRN
estimates that it will take 15 months to install the radar
system. GRN officials hope the radar will be ready in time
for the 2010 World Cup in South Africa.

Lax Oversight Leads to Risky Behavior
- - - - - - - - - - - - - - - - - - -


6. (SBU) Hans Wiehan, CEO of Namibia Commercial Aviation,
told econoff that DCA officials simply lack the aviation
industry experience required to understand their role.
Wiehan noted DCA officials often "over regulate on small
insignificant things" and do not address important issues.
One charter company official noted that an aircraft inspector
reviewed one of his planes for five minutes and determined it
was airworthy. The inspector, however, reportedly had never
seen the make and model of the plane before. Rothlisberger
noted that the DCA had not conducted a substantive audit of
his company in three years. He remarked that lax government
oversight has led some charter companies to cut corners, such
as putting newly minted commercial pilots into the air
without adequate on-the-job training.


7. (SBU) The lack of proper aviation oversight appears to be
leading to riskier piloting. A January 15 newspaper article
in the daily "The Namibian", noted that some pilots are
acting like "cowboys" and not respecting aviation guidelines
around Swakopmund, a coastal city which attracts many
tourists. For several months Swakopmund's airfield lacked an
air traffic controller, but even when one was on duty, pilots
routinely ignored control tower instructions, often flying
too low on fly-bys.

DCA Not Fully Equipped for the Task
- - - - - - - - - - - - - - - - - -


8. (SBU) Acting Director of Civil Aviation Angeline
Simana-Paulo, at a December 10 meeting with econoff,
acknowledged the challenges cited by the charter companies
and the Namibia Air Traffic Controller's Association. She
noted her own lack of aviation experience and recognized her
agency still has vacancies in many key positions. For
instance Windhoek's lead air traffic controller, recently
promoted to the position after two years on the job because
her predecessor had left for South Africa, confirmed that
lack of staffing and radar seriously strained her fellow
controllers. Simana-Paulo will soon be leaving the DCA to
return to her previous post within government. Her
assignment was always considered temporary, until permanent
DCA Director Mr. Bithuel Tijao Mujetenga returns from his
stint as Namibia's representative to ICAO.

The Bumpy Skies to the Rickety Rails
- - - - - - - - - - - - - - - - - - -


9. (SBU) While Namibia's aviation sector has garnered much
attention with its small private aircraft too frequently
falling from the sky, Namibia's railways are also receiving
greater scrutiny. Passenger service on TransNamib (the
state-owned rail company) has plummeted as the company has
had to close down routes because of rail infrastructure
problems. A January 12 fire that completely destroyed a
passenger car has only added to TransNamib's woes.


10. (SBU) Labor unrest and out of service Chinese locomotives
have crippled TransNamib's productivity. A strike in August
2008 highlighted Namibia's dependence on its rail
infrastructure. The strike is estimated to have cost the
country close to USD 22.5 million in lost revenue. Until
2003, TransNamib operated only General Electric (GE)
locomotives. Since then it has purchased 21 Chinese
locomotives which have proven to be a headache for
TransNamib. Several Chinese locomotives are currently
off-line awaiting parts; some have been out of service for up
to three years. This has not been a problem with the GE
locomotives TransNamib still maintains, according to company
sources.


11. (SBU) The GRN intends to use TransNamib as a critical
link in its plan to turn the port of Walvis Bay into a major
regional transshipment point. Many European and American
products can reach Southern African Development Community
(SADC) countries faster and more efficiently via Walvis Bay
than through other major ports in the region. The GRN is
investing over USD $500 million in port expansion projects.
To promote Walvis Bay as a major regional hub, the GRN has
formed a public-private partnership called the Walvis Bay
Corridor Group (WBCG). However, the expansion and promotion

WINDHOEK 00000038 003 OF 003


of the port of Walvis Bay seem to be outpacing the rail
infrastructure's ability to handle cargo. TransNamib Acting
CEO Mike Kavekotora told emboff that some stretches of track
linking the north to the critical port of Walvis Bay are so
dilapidated that they may not last more than two more years.
WBCG Business Development Executive Johny Smuts told emboff
January 20 that while investment is critical, the lack of
experienced railway managers to develop a master plan for the
rail sector is what stands between the WBCG's dreams and
reality.


12. (SBU) The smaller port of Luderitz also faces railway
connection issues. According to the press, 47 kilometers of
rail connecting Luderitz to the main rail line need
rehabilitation, but the Ministry of Works and Transport does
not have adequate funding for the project. According to
Works and Transport Minister Helmut Angula, the GRN will
shift funds for existing railway projects in the north to
handle the Luderitz line. The GRN is also contemplating a
300 million Namibian dollar (USD $30 million) soft loan from
China to finance the northern railway extension project.
According to press reports the Chinese are seeking
construction contracts in exchange for the loan. (Note:
Minister Angula has publicly raised concerns about Chinese
construction projects, lamenting that Chinese companies
choose not to employ "African workers, because they have a
different culture" and that Chinese companies wish to use
Chinese construction materials, instead of locally (or
African) sourced products. Other cabinet ministers have in
the past expressed their concern over Chinese companies
winning government contracts despite reported noncompliance
with tender requirements and labor laws, but none have made
statements as forceful as Angula's recent comments. End
Note).

Comment
- - - -


13. (SBU) Anemic planning coupled with few skilled (trained)
workers and low levels of investment could scuttle the GRN's
plans to use the aviation and rail industries as catalysts
for Namibia's economic growth. Tourism plays a significant
role in the Namibian economy, representing well over 10
percent of GDP. The government is banking on the tourism
sector growing to 20 percent of GDP by 2018. The cumulative
effect of additional small aircraft disasters could damage
the government's ambitious plans for the tourism sector.


14. (SBU) Meanwhile, the GRN is well aware that the ongoing
problems with the country's rail infrastructure could crash
the government's plans for Walvis Bay. Most of the business
community and some government officials recognize that the
GRN cannot transform TransNamib and the rail infrastructure
without attracting significant investment and expertise, some
of which will likely have to be foreign. On January 29,
Minister of Works and Transport Helmut Angula acknowledged
publicly that lack of funding, lack of expertise, and
political interference is crippling TransNamib. At the
request of Angula's Deputy last fall we provided names of
retired U.S. rail executives who might be willing to spend
three to five years reinvigorating TransNamib and helping the
country devise a long-term rail infrastructure plan. While
the GRN may be reaching out for foreign expertise, there is
no evidence that there is the political will to change the
government's prohibition on private investment in state-owned
enterprises such as TransNamib. Government and business
officials have privately told emboffs that any such change
will not happen until after the 2009 national elections.
Until then, political interference and lack of investment
will continue to cripple TransNamib as foreign experts will
likely shy away from trying to help a company which is
hamstrung by its own government. End Comment.
MATHIEU