Transport
From The Report: Algeria 2014
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As a result of high oil revenues over the past decade, Algeria’s transport infrastructure has been significantly overhauled, benefitting from generous public sector spending. During the 2010-14 period, the government allocated €30.1bn to be used for road expansion and maintenance, as well as improvements in port infrastructure, with an extra €27.2bn invested in the railway sector and air transport infrastructure. This sort of capital-intensive spending is likely to continue, even as the state sees a drop in oil revenues, its primary income. More crucially, the government is gradually shifting attention to soft infrastructure to ensure that processes and execution keep pace with capacity upgrades.

This chapter contains an interview with Amar Ghoul, Minister of Transport.

Articles from this Chapter

Overview

Fresh government investment allocated to enhance transport links
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As a result of high oil revenues over the past decade, Algeria’s transport infrastructure has been significantly overhauled, benefitting from generous public sector spending. Tens of billions of euros have been channelled into roads, rails, ports and airports over the past five years alone, with an equivalent amount due to be disbursed through 2019. Allocation During the 2010-14 period, the government allocated €30.1bn to be used for road expansion and maintenance, as well as improvements in…

Analysis

Expansion of the highway network to reshape land transport
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In its efforts to overhaul transport infrastructure, Algeria has directed significant investment towards its road network. In addition to nearing completion on the East-West Highway, construction is also starting on another major project – the Hauts Plateaux Highway, running further south. These two routes, which will cost a combined total of around €16.2bn, will cross the country in two bands from east to west, connected by an array of auxiliary roads. “The goal is that by 2025, 44 wilaya…

Interview

OBG talks to Amar Ghoul, Minister of Transport
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Interview: Amar Ghoul How can efficiency at Algerian ports be improved? AMAR GHOUL: One of our flagship priorities is the implementation of an electronic one-stop-shop project at the port of Algiers that should be subsequently extended to other Algerian ports. The one-stop-shop will allow us to increase the efficiency of port operations and reduce wait times by substantially alleviating management procedures. As such, we are working in coordination with Customs, trade services and the police, which…

Analysis

Investments in port expansion help improve economic efficiencies
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Given the country’s large quantity of imported goods and the importance of hydrocarbons exports, Algeria’s economic performance is largely connected to how well its ports function – even more so as up to 95% of Algeria’s international trade passes through its port network, according to the European Commission. In recent years, several of the country’s primary and secondary ports have undergone significant capacity upgrades, partly under the purview of private operators that have helped…

Analysis

Local content preference extends to transport infrastructure sphere
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As part of the country’s ambitious infrastructure programme, the government has enacted new measures aimed at encouraging greater participation of local firms. Amendments to the 2010 public procurement law have also introduced new rules for foreign companies and outlined special procurement procedures for state-owned enterprises (SOEs). New Legislation When the current public procurement law was first adopted in October 2010, foreign firms could only participate in public tenders through partnership…

Analysis

Understanding Algerian logistics in the African context
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Supply chain quality, reliability and timeliness are key for any emerging market. However, with all of the attention on Africa as an investment destination in recent years, the continent’s infrastructural deficiencies, fragmented transport networks and institutional weaknesses have highlighted the importance of improving logistics and freight transport. Although freight transport in Africa is generally characterised by high prices and long delays, the situation varies substantially across the continent…