MSC becomes first carrier to break 20% global market share barrier
MSC has become the first container shipping line to command a global liner market share ...
By Stuart Todd
CMA CGM is poised to unveil a multi-billion euro investment programme in Algeria, part of strategy to gain access to the promising North African market and trade corridors to sub-Saharan Africa, according to media reports.
It follows a 2 June meeting in Algiers between the head of the French ocean shipping line, Rodolphe Saadé, and Algeria’s president, Abdelmadjid Tebboune, focusing on “reviewing opportunities for cooperation in the port and logistics sector”.
While CMA CGM has not commented, local media reports said the group was planning to invest “several billions of euros in the medium term, through the construction of modern port infrastructures, container terminals, and direct involvement in logistics management”.
The launch of a shipping link between Marseille and the Algerian port city of Oran, operated by La Méridionale, a subsidiary of CMA CGM, operating ro-ro services, is also planned.
Using LNG-powered box ships, CMA CGM could shorten transit times between France and Algeria to less than 48 hours and contribute to transforming trade between the two banks of the Mediterranean.
And via subsidiary CGM CMA Terminals, the group would also invest in the redevelopment at the port of Oran, carrying out dredging operations, renovating quaysides, and upgrading handling facilities to take capacity beyond 1m teu a year. These projects could generate more than 2,000 direct jobs.
According to the eeSea liner database, Oran currently hosts six container feeder services, two of which are provided by the French carrier.
CMA CGM is also eyeing the development of Algeria’s deepwater port of Djen Djen, where, according to eeSea, it operates its only service, a feeder string connecting it with Barcelona and Malta. The terminal is currently operated by DP World.
Isolationist, and with an economy heavily dependent on oil and gas, the former French colony has struggled to attract foreign investment, but with a young, growing population, expected to rise to close to 49m by the end of this year, there are hopes the country will commit to diversifying its economy and open up to international trade.
“We have a strong belief in the development of Algeria. I think it has real potential’, Mr Saadé told Algerian television after his meeting with the Algerian head of state. “We are going to try to overcome the operational difficulties and move forward in the right direction.”
Mr Saadé had been scheduled to visit Algeria in April. However, the visit was postponed amid high diplomatic tensions between France and Algeria.
With CMA CGM already present in several Algerian ports, the investment would take its presence in the country to a new level, especially in obtaining the full management of a strategic port terminal.
CMA CGM’s investment in North Africa until now has focused on Morocco. In October, it created a joint-venture with state-controlled port operator Marsa Maroc to invest $280m in part of a new container terminal.
CMA CGM Group also owns a terminal in Casablanca and 40% of a terminal at Tangier Med. And with La Méridionale, it also operates a ferry service between Marseille and Tangier-Med.
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