 LINKING ALGERIA BY AIR AND SEA |
Transportation will also be a sector to watch out for, but the privatization process is complicated and could be lengthy. Indeed, all harbor services should be privatized, and the plan is for private companies of different origins to take over, while public authorities only play a regulatory role. Algeria has eight trade harbors and the Port of Algiers holds the most important piece of the pie, with 40% of the total trade traffic.
In this context, foreign companies such as Maersk and CGM-CMA are considering the opening, and the liberalization of the sector to be a good opportunity to expand their business in Algeria. CGM-CMA, a sea borne services company has been doing business in Algeria for more than a decade. Leader of the consignment in the year 2000, CGM-CMA, with a French capital of 10%, has transacted 20% of container traffic in Algeria. Lazhar Hani, General Manager of the company, believes in the capacity of the company to go forward "if the harbor activities are liberalized in Algeria. This would be a great opportunity for us to expand and diversify our business in many other different trades". Furthermore, another part of this liberalization is the privatization of the CNAN (Algerian Company of Seaborne Navigation) as well as the ENMTV (National Company of commercial Seaborne Transport). Indeed, in order to make up for their deficits and renew their decayed and insufficient fleet, the two companies have to yield part or all of their capital, thus giving up their monopoly in the sector.
In contrast to sea transportation, the reforms in air transportation have been more successful. Launched in 1998, and favored by the departure of all foreign airline companies in 1994 - Alitalia being the only major carrier that returned later - the privatization of this sector gave birth to many private airline companies, which have become real competitors to Air Algérie, the State owned Airline Company. Air Algérie could not meet international standards due to its limited means. So, newly born Algerian private airlines have embraced the change, and are working hard to satisfy an increasing demand. This boom brought about a wider opening of Algeria as well as an increase in international flight demand.
| Thanks to better management and consistent financial means, as well as alliances with Tunis Air and Europa, Eco-Air is considered to be one of the new, up and coming Algerian airline companies. The field is open for competition, and for this reason Eco-Air is looking to consolidate its position through partnerships. "Though we have considerable financial means, we are still looking for a partner with consistent means, although our focus will especially be for the development of a management and technology contribution".
Created in 1999, and bought out at 100% by the Group Lakhlef, Eco-Air is in the process of expanding its services. "We have also signed contracts with leasing companies for a number of planes, not only to build a commercial fleet, but also to establish also a fleet intended only for oil companies in the South of Algeria". Although the situation is more and more challenging as the skies open up to greater competition, Lakhlef believes that the sector is still open for new business opportunities.
In fact, the major and actual challenger of Eco-Air is not Air Algérie but Khalifa Airways. Indeed, after 2 years of existence, Khalifa Airways has succeeded in capturing an imposing share of Air Algérie' s business.
According to Rachid Amrouche, Secretary General of the Khalifa Group, "Khalifa Airways will acquire 20 aircrafts before the end of the year in order to reinforce its present fleet. The company is in continuous growth, and has equivalent or even superior standards to those offered by foreign carriers. While keeping with long-term objectives, we will train 200 pilots in Oxford. Not only has Khalifa Airways purchased Antinea Airlines to boost its fleet, but the Khalifa Grouphas also built its own international airport in collaboration with foreign partners".
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ALGERIA,
