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 announced 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 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 the expulsion of diplomats from both sides.
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 delays and 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 expand 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 finalized an investment plan for Oran port, likely to be made public by the 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.
