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Libya
The new gateway to Africa, open for business [ go to first page of report ]

TOP ORGANIZATIONS INTERVIEWS
MR. MOHAMED ABDUSSAMAD ALI Interview with:

MR. MOHAMED ABDUSSAMAD ALI

Chairman of Libya Railways.


Tripoli, 28th June 2002

Could you give me some background information about the Railways project? When did it started?

As you know, Libya is in a very important geo-strategic position, at the crossroads between Europe, Asia and Africa. When we are speaking about railways, Libya has just started to build around 3,170 km. of railway. This project has two main directions: one starting at the Tunisian border, in the east, to the Egyptian border in the west, throughout the coast, which has a length of about 2,100 km. And also from Sirte in the north to Sabbah in the south, throughout the desert, with an approximate length of about 1,000 km. This railway to the south wants to connect with the Niger's capital. When this project is finished, the result will be a big corridor that will connect Europe with Africa: From Spain to Morocco, Algeria, Tunisia, Libya, Niger, Nigeria, etc. This will be very useful and profitable, because it will connect the countries producing raw materials and agriculture products with the industrialised countries in Europe. I think this will reduce significantly transportation costs. It will also connect the entire Arab world, from Morocco to Saudi Arabia and the Gulf countries.

This idea is supported very strongly by our Leader, because he believes that Libya is a country for peace, a country for cooperation, to help develop the different regions. His vision is a war not against us or other countries, but against the desert, the nature. We have to overcome the nature's obstacles in order to help develop trade and cooperation between countries.


Which is the current situation of the project? Which phases have been achieved?

All the different phases but the one between the Tunisian border and Tripoli are already designed but are not constructed yet (around 80% of the whole network). We have made the public offers and tenders and we are starting to decide which one is the best one for each phase, for example the one from Tobruk to the Egyptian border.

We will try to finish the whole network in about 5 years, but there are still some troubles ahead. Maybe it will take a little bit more time, but it will reach maximum 7 years.

What are the areas you are going to focus the most: the area of passengers, transport of goods? And which are the geographical areas where you are trying to extend the network?

We are going to focus on the goods freight, especially on the north-south axis, but the passenger transport will lay also an important role in the west-east axis.

Could you explain our readers what is exactly the aim of the Built Operations & Transfer (BOT) System?

When we ask the European and foreign companies to come here to visit us and to make their offers we ask them to come together, to build this corridor together, because this is one of the biggest projects in the world, and it's not easy to do it by ourselves. So we proceed with the BOT system. This means that we divide the project in different sections, from one location to another, one or two thousand kms., and the company or group of companies can do everything by themselves: infrastructure, signalisation, station construction, locomotives, and even the railway management for that section. The company will benefit from all the revenues coming from this investment and the property of all will revert to the Government in let's say 30 or 50 years. This period of time depends on the negotiation.

A Chinese company has been awarded with the first contract. Have you ever received any other applications from foreign investors showing their interest in railways in some particular lines?

Of course. We have received many offers from companies in Asia, Middle East and Europe: Germany, UK, France, Spain, etc. They are coming regularly and we are discussing with them some ideas.

How is structured the tender procedure?

Let me put you an example. We want to build 32 bridges for the railway network. The General People's Committee approves the tender. Then we call the companies directly or through tenders published in newspapers, in our website. Then we get offers from many companies around the world. Then we have different committees in the Board that discuss the advantages and disadvantages of each offer. We don't focus only on the price. This is an important factor, but we take into account also the experience and the time needed. It is also important that the company comes from a friendly country. This is a condition that the People's Congress put us. Then we decide which one is the best offer and we take it to a control department that makes sure that all the procedure of the tender was correct. If it agrees, we sign the contract and the company starts working.

Can the train, in a country as vast as Libya, compete with the plane and the excellent road network? We are talking about a 10 billion USD project. In the 21st century, is such huge investment in railways profitable in investment-return terms?

We are not talking only of a commercial investment. This is a highly strategic project, and not only for Libya, but for the rest of the world. You are right when you say that we have an excellent road network (32,000 km.) But the railways will play an important role in the transport of manufactured goods and raw materials in a very economic and environment friendly way. And also will enable bigger trade and will prevent road deterioration and traffic accidents.

You say that this project is not only good for Libya, but for the whole continent. Therefore, I presume that you are in close contact with the Railways Authorities of other African countries?

We have cooperation with Tunisia, Algeria, Morocco, and Egypt. We have technical committees that study the different possibilities of cooperation. For example, the width of the rails is different in Egypt and here, so we are trying to solve that problem. There is no financial cooperation, but more of a technical assistance and know how cooperation.

What was the personal touch of the Leader in this project?

The Leader is very interested in this project. He has compared it with the Great Man Made River Project. He has said that we need to foster cooperation between the European states and the African states. This is a strategic project, and is for the future benefit of the entire world.

What would be your last message to the international business community that reads REVIEW magazine?

I would say to them: let us work together and make a good job for the entire world. Let's cooperate and bring the three continents together: Europe, Asia and Africa

Thank you very much for your comments

Thank you


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