✏️ BY: Dr. Hana Saada
Algiers, Algeria | June 10th, 2024 — The improvement of port performance, particularly in optimizing the transit times of goods, was a central topic in the recent Council of Ministers meeting. President Abdelmadjid Tebboune emphasized the need for a new port management strategy to invigorate this critical sector. The Ministry of Transport has already initiated steps towards this goal and has now outlined the forthcoming measures to be undertaken.
Immediate Steps and Future Plans
Following the Council of Ministers meeting, there was considerable interest in the specific measures planned by the Ministry of Transport to align with the President’s directives. Abdelghani Dridi, the Secretary General of the Ministry of Transport, addressed this during a national radio broadcast, highlighting the preliminary work aimed at speeding up procedures at ports, particularly concerning the unloading times of goods. Dridi mentioned that a set of regulatory texts related to the management of the ten commercial ports is currently under review by the General Secretariat of the Government. These texts include the establishment of a Port and Maritime Authority.
Significant Volume of Maritime Trade
Given the substantial volume of goods processed through Algerian ports—126 million tons in 2023—the optimization of transit times has become an urgent necessity. Algeria’s heavy reliance on maritime transport underscores the importance of this sector. In response, the country is revamping its national fleet and reorganizing port management to reduce dependency on the five global industry giants and enhance cargo handling efficiency at port terminals.
A $3 Billion Transport Bill
The strategic objective is for Algeria to cover 25% of its maritime cargo transport needs with a fleet that will eventually comprise 25 ships. This initiative aims to reduce maritime transport costs, which currently exceed $3 billion annually, directly affecting the prices of goods in the domestic market.
Addressing Port Congestion
To prevent port congestion similar to the 83% occupancy rate observed in October 2023, an intersectoral committee led by the Minister of Transport has been established. Dridi noted that these efforts have already yielded significant results, with port congestion decreasing by 53% between September 2023 and March 2024. This improvement is partly due to the implementation of the Algerian Port Community System (APCS), a digital management platform.
Reducing Wait Times
Dridi acknowledged the ongoing challenge of long wait times, with containers currently remaining immobilized for 14 days in some ports. The ongoing digitization efforts aim to expedite procedures, striving to meet the 24-hour turnaround time previously achieved. Dridi emphasized the need to conform to international standards, where vessel unloading is measured in hours rather than days. Revising regulatory texts is essential to achieving this level of efficiency, as prolonged immobilization results in demurrage charges—additional costs imposed by the shipowner or port operator when loading or unloading times are exceeded. These charges represent a significant financial burden for importers, highlighting the urgency for efficient and prompt port management.
Specialization of Ports
In line with efforts to boost port performance and support the national economy, the Ministry of Transport is actively pursuing the specialization of ports. For instance, the port of Djendjen is undergoing a study in collaboration with the teams from the port services group (Serport). Dridi noted that this study was discussed in a recent working meeting with the general directors of the ports. He also mentioned that the ports of Béjaïa and Ténès are, to some extent, specialized in cement exports.
This strategic focus on port management aims to enhance Algeria’s economic resilience, reduce operational costs, and improve the overall efficiency of maritime logistics. The implementation of these measures will be closely monitored to ensure their effectiveness in transforming Algeria’s port infrastructure and management practices.
Translated from:
https://lalgerieaujourdhui.dz/la-strategie-de-letat-pour-ameliorer-la-gestion-portuaire/
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