Rebuilding Algeria’s Maritime Industry

Twenty years ago, Algeria’s merchant marine fleet had more than seventy vessels, today there are only six. The absence of a national fleet has resulted in the country losing at least $4 billion per year. Some ships have been destroyed and the whereabouts of other vessels is unknown. Some reports indicate that at least 25 vessels are being detained around the world for non-payment issues. The fleet’s disappearance is due to the government’s failure to adopt a fleet development policy, resulting in the halt of maritime sector investments.

The impact is enormous as 95% of Algerian goods move via ocean. Considering the cost of transportation in Algeria represents 10% of the cost of the value of the goods – while in developed countries it is less than 4%, you can see how the lack of a fleet has dealt a massive blow to the Algerian economy. 

In order to try to improve the maritime sector, the Algerian government is enacting a strategy to turn the ports into important economic and social development hubs. Development and modernization of port infrastructure is underway and resources of close to $1 billion were given to the Algerian National Society of Naval Navigation (CNAN) to acquire new ships. The goal is to transport one third of Algerian goods via CNAN, for an initial saving of nearly $1.5 billion per year. As of now, CNAN has acquired 18 vessels, which will allow for a 20% increase of market share in 2016, before reaching 35% in the coming years.

Algeria is also preparing the port infrastructure for container shipments.  Globally, the rate of containerized shipments has reached 70%, while in Algeria the current rate is between 35% and 45%.

There are current plans to construct new ports, one in Algiers in partnership with Emiratis and another large port in the center of the country.  This large port will have a max capacity of 6 million containers, representing a total traffic of 40 million tons, and will process some of the traffic from the planned port of Algiers, in addition to international traffic.

After successfully building up the ports, the next step will be to connect all of the country’s ports by rail and roadway, which will significantly contribute towards the growth of the maritime transport sector in Algeria.

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.

Allyn Contributors: Anne-Sophie Receveur, Laetitia Garret, Mina Javid

More information here:

http://www.algerie-focus.com/2015/12/132500/

http://www.elmoudjahid.com/fr/actualites/88031