Business | Shipping
DP World signs joint venture agreement with Algeria
Global marine terminal operator DP World and the Algerian Government signed on Monday agreements that involve DP World taking over the operation of the ports of Algiers and Djen-Djen.
- By Nasouh Nazzal, Staff Reporter
- Published: 21:01 November 10, 2008
Algiers: The DP World will invest $108 million in upgrading the ports of Algiers and Djen-Djen after taking over from the Algerian Government, a top official said.
DP World chairman Sultan Ahmad Bin Sulayem said the port of Algiers lacks the advanced machines and equipments and that particular issue will be handled instantly.
DP World, the world's fourth terminal operator, will increase the draft of the port to accommodate larger vessels.
"We have the experience, the knowledge and the finance to do the work the right way," he said, adding that the traffic movement will be to, from and via Algeria.
"We will get the ports ready and updated to ascertain the marine companies of this fact and attract them to use these ports," he added.
"We are confident that our role will positively contribute to the Algerian economy," he said.
"Taking over and operating ports is only a part of the business of the DP World, and once we are there on the ground, we will encourage companies under the umbrella of the DP World to get the opportunity of doing business in Algeria," he said.
He explained that the sizes of the vessels usually change, where the ports stand in need for up-to-date infrastructure and machines to attract even the fourth generation of the huge vessels. "We are currently discussing with the government in Algeria the issue of the easy access for the goods into the country," he said.
"Our set target at the joint venture will redevelop the main container terminal at Algiers to expand capacity to around 800,000 TEU but that could reach 1 or 1.2 million TEU as we will get all the possible opportunities with the marine companies," he said.
Commenting on the size of the investment, Bin Sulayem said this is an initial investment ($108m) which will be surely increased when the traffic of the vessels starts.
Algerian Minister of Transport Amar Tuo said his government encourages Arab investments, particularly from the GCC countries, with special care for the UAE investments.
Tuo said that the Algerian ports are planned to be the gateway to Africa and the north Mediterranean and unless they are updated, that role can not be fulfilled.
"We expect Algerian ports to end up in a high level that would match up with the expected future Algerian prosperous economy," he said.
He explained that Algeria is going though huge development where a budget of $200 billion had been allocated to the 2005-2009 plan, and a minimum similar budget has also been allocated for the 2009-2013 plan. He said that the majority of these budgets will be spent on infrastructural projects including two networks of railways.
Tuo said that it was time to update the Algerian ports which can play the key role and be the gateway for the West Africa. "It is either we rise for the competition or we lose everything," he said.
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