In March 2024, the state-owned rail utility floated a notice inviting private entities to express interest in operating the passenger train service, popularly known as the Blue Train. At the time, the BR specified that the Expressions of Interest (EOI) were reserved for citizen-owned companies without giving further details on the partnership model. It was said then that the government was exploring various options to bring private sector participation into the rail sector as part of a broader plan to unbundle BR. Environment and Tourism minister, Wynter Mmolotsi, told Parliament recently that they are still looking for a private sector partner. "We are also working on a concept paper, which will give us guidance on the best and effective model of running passenger services," he said.
To guide the transformation, BR said it was working on a concept paper to determine the most effective model for operating passenger services. The Blue Train, which was suspended in January 2020 due to financial losses, remains out of service. The government has reaffirmed its commitment to revitalising rail infrastructure to unlock economic opportunities, create jobs, and promote sustainable development. Additionally, the ministry stated it was restructuring state-owned enterprises and departments to optimise efficiency. This includes reviewing laws governing aviation, rail, and road transport, as well as considering the separation of rail infrastructure from operations. Despite challenges in the passenger segment, BR has seen improvements in freight revenue. In the first quarter of the year, the parastatal generated P65 million, compared to P62.3 million in the last quarter of the previous year. The growth aligns with an increase in freight volumes, which rose to 268, 247 tonnes, with imports and Botswana-origin traffic making up 77.5% of the total. The country’s main rail cargo includes fuel, coal, salt, and soda ash. Exports accounted for 27.5% of total freight, while transit traffic and imports contributed 22.5% and 20.1%, respectively. "Botswana Railways is advancing several infrastructure projects to expand the country’s rail network," Mmolotsi added.
Meanwhile, the feasibility study for the Mosetse-Kazungula-Livingstone Rail Link is expected to be completed by April 2025. The contract for feasibility studies and transactional advisory services for the Trans-Kalahari Rail (TKR) Line is expected to be finalised by March 2025. For the Mmamabule-Lephalale Rail Link, Botswana Railways and South Africa’s Transnet are negotiating a joint agreement, set for completion by March 2025. Following this, a Request for Proposals (RFP) will be issued to shortlisted bidders. The project has already attracted interest from 15 investors, with 14 making the shortlist. This rail link is crucial for Botswana’s coal exports via South Africa’s Richards Bay port. Additionally, work has begun to upgrade the Limpopo trade corridor, which connects Botswana with Zimbabwe and Mozambique. The upgrades are expected to be completed by the third quarter of the 2025/2026 financial year. This route is essential for transporting petroleum products from Mozambique.
