CMA CGM Pursues Port Investment in Algeria

 

CMA CGM is moving ahead with its investment deal in Algeria. It comes as the French carrier is building its logistics and terminal operations including in the Mediterranean where it recently announcement that it would modernize Syria’s Latakia port and has a long-standing agreement to redevelop the port of Beirut. 

The ocean carrier’s CEO Rodolphe Saadé met on June 2 with the Algerian President Abdelmadjid Tebboune. They discussed two discussed upcoming port projects by the shipping giant. The meeting was initially scheduled in April but a diplomatic dispute between Algeria and France led to the delay. Algeria’s ties with its former colonizer, France, have been lukewarm over the years. However, the relationship deteriorated in April leading to expulsion of diplomats from both sides. 

CMA CGM appears keen to overcome these difficulties and move forward with its projects in Algeria. “We can be an ally of Algeria in developing infrastructure and making Algerian ports true regional hubs. I strongly believe in the potential of this country,” Saadé told the local media.

With CMA CGM scaling its footprint in the Mediterranean region, Algerian port sector presents a good opportunity for this ambition. Algeria is increasingly diversifying its economy to cut reliance on oil and gas exports. Central to this shift is a revamp of the port sector to cater for the rising container shipping traffic.

CMA CGM has shown interest in modernizing the ports of Oran and Djen Djen. This will help in decongesting the Port of Algiers, which is currently experiencing delay challenges with vessel waiting times exceeding seven days. 

In Oran, CMA CGM reportedly wants to lease the container terminal through its subsidiary, CMA Terminals. The goal is to expend the terminal to have a capacity of handling over one million TEUs annually. According to local media reports, a technical team from CMA Terminals has almost finalizing an investment plan for Oran port, likely to be made public by end of this year.

To improve its intra-med connections, CMA CGM is also considering a feeder shipping line between Marseille and Oran, reducing the transit time to less than 48 hours. The service will be operated by its subsidiary La Méridionale, which was acquired in 2023.

 

Top photo by Habib Kaki -- CC BY 3.0