Algeria shifts its port policy and moves closer to France
French media reported that Algeria has decided to modify the approach to the Hamdania port project, located west of its capital, which was to be jointly financed and built by French and Chinese companies through loans.
However, some sources indicated that the recent visit of French businessman Rodolphe Saadé to Algeria earlier this month and his meeting with President Abdelmadjid Tebboune could result in French companies ultimately carrying out the project.
That is why, in the main Algerian media, various opinions from experts in the port sector have pointed out that this businessman, who heads the well-known shipping company CMA-CGM and owns a large media group in France, is the main candidate to mediate between the two powers, given his close ties to Emmanuel Macron and his role in the Élysée Palace.
This power positions Saadé as the ideal candidate to mediate trade between Algiers and Paris. For these reasons, Rodolphe Saadé's arrival in Algeria and his conversation with President Tebboune have been linked to the Algerian government's possible decision to award the entire Hamdania port project to CMA-CGM.
At the same time, the Algerian authorities confirmed, through the director general of the Algerian Port Company (Serport), Abdelkrim Rezzal, the veracity of French media reports on the definitive cancellation of the Hamdania port project, located in the suburb of Cherchell, in the province of Tipaza, 50 km west of the capital.
The director of the Algerian Port Authority suggested that the decision to abandon the project was due to technical and economic issues and that, with other port projects still under evaluation, China could have the opportunity to participate in some of them, although the priority at this time seems to be to facilitate the French group's development and modernisation of existing ports.
In addition, analysts have commented that the conditions set by China for the port of El Hamdania were unequal, such as the requirement to finance only Chinese companies involved in its construction, in addition to its high cost, close to 5 billion dollars.
This week, an article in the French newspaper L'Opinion mentioned that 'the Algerian president has cancelled the project for a deep-water port in El Hamdania, which began in 2015 and was planned to be awarded to China, due to its extremely high cost, which skyrocketed during the presidency of the late Abdelaziz Bouteflika. Instead, the authorities plan to improve the existing port network to allow access to larger ships.'
The article pointed out that most ports do not have the necessary characteristics to accommodate large ships. Several dredging projects were also reported to reach a depth of 17 metres, instead of the current 12 metres, with a view to reaching 20 metres.
In turn, the French media outlet pointed out that ‘another option is the construction of new docks extending out to sea to accommodate ships,’ but this would be more expensive and would greatly limit the port's operations.
According to the French newspaper L'Opinion, ‘This proposal is part of a strategic plan that seeks to establish Algeria as a key logistics hub between Europe and Africa. In this context, President Tebboune met with the CEO of the French group, Rodolphe Saadé, in early June.’
This framework, in which Algeria seeks to bring its positions closer to those of France through the award of strategic contracts, also suggests that the Algerian administration has for years considered closer ties with France to be a key advantage in the Mediterranean region and a link between Europe and Africa. Despite the similarities between the messages from Paris and Algiers, the choice remains an enigma, especially in terms of its political significance.
Project figures
The total cost of the plan varies between 3.3 and 5.3 billion dollars, part of which will be financed through a loan from the Export-Import Bank of China (Eximbank) and will be managed by a joint development company between Algeria and China, the Hamdania Joint Stock Company.
Algeria is expected to hold a 51% stake and China 49%, and it will be awarded to the China State Construction Corporation and the China Port Corporation. A timetable has been set for the project, with an implementation period of between seven and ten years, and partial operations are expected to begin within the first four years of construction.
The company intends to invest hundreds of millions of euros in projects that include the construction of modern container terminals, the improvement of logistics systems and the possibility of operating an important strategic port.