Algeria Positions Itself As Mediterranean Maritime Hub, Attracting Global Shipping Giants

(MENAFN- The Rio Times) Algeria is making strategic moves to transform its maritime sector. The North African nation aims to become a major hub in the Mediterranean.

This shift aligns with the interests of international shipping companies like CMA CGM. These firms seek to diversify their operations amid tightening European regulations.

Algeria's ambitious port modernization program underpins its maritime strategy. The country boasts a 1,280 km Mediterranean coastline.

Its location between Europe, Africa, and the Middle East offers natural advantages. These factors position Algeria as a potential nexus for international trade.

The port of Djen Djen in Jijel province stands at the forefront of Algeria's maritime vision. President Abdelmadjid Tebboune has initiated a significant expansion project for this facility.



In addition, plans include deepening quays to 20 meters to accommodate the world's largest container ships. The port will also integrate cutting-edge technologies to optimize operations.
DP World's Partnership with Algeria
DP World, a global port management leader, has partnered with Algeria on the Djen Djen project. This collaboration brings international expertise to the table.

The upgraded port could rival Morocco's Tanger Med, currently North Africa's primary transshipment hub. This development may reshape maritime traffic patterns in the western Mediterranean.

CMA CGM, the French shipping giant, has already established a strong presence in neighboring Morocco. The company holds stakes in Tanger Med's Eurogate terminal and Casablanca's SOMAPORT.

Recently, CMA CGM invested $280 million alongside Marsa Maroc to develop the Nador West Med terminal. However, CMA CGM's Moroccan operations alone cannot address current economic challenges.

Algeria represents an attractive complementary market for the company. It offers opportunities to strengthen CMA CGM's North African network and expand into sub-Saharan markets.

Algeria is actively reforming its economic framework to attract foreign investment. The government has streamlined procedures for international companies.

Public-private partnerships are increasing, signaling greater openness to global players. The maritime sector leads this trend. These reforms, coupled with Djen Djen's development, position Algeria to attract major shipping companies.

Industry leaders like CMA, CGM, and MSC may find the country's offerings appealing. However, logistical challenges remain. Logistics costs in Algeria currently account for up to 35% of product costs.

In addition, Algeria's maritime transformation involves substantial investments and strong political will. For shipping giants like CMA CGM, Algeria offers regional network expansion opportunities.

The country provides a less restrictive environment compared to Europe. Algeria's geographic position and ongoing reforms make it a strategic gateway to sub-Saharan African markets.

The International Maritime Economy Conference in Algiers highlights Algeria's maritime ambitions. Scheduled for November 4, 2024, the event will explore the sector's future.

In short, it brings together industry leaders, policymakers, and experts to discuss key challenges and opportunities.

MENAFN05112024007421016031ID1108854472