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 
- - - - 
 
¶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