A push to develop all available means

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A modern and multi-modal transport network is needed to stimulate economic growth nationwide, and the government is committed to developing and upgrading its transport system. Significant resources have been dedicated to extending and enhancing the existing infrastructure. The national projects, both those proposed and under way, are being built in conjunction with urban public transit systems. These projects are aimed at reducing congestion and creating safe, efficient and environmentally sound means of trans-port for the populations of large cities.

AIR TRAFFIC: Despite dips in travel due to the financial crisis, air transport continues to undergo sustained growth. In response to growing international and domes-tic demand, the national carrier, Air Algérie, has launched a large-scale development program. Total passenger traffic increased 8.32% in 2008, reaching 7.88m, up from 7.27m in 2007. International traffic rose from 3.82m to 4.11m, while domestic grew from 3.45m to 3.77m. Freight also increased in 2008, reaching 29,606 tons, up from 28,462 tons in 2007.

Algeria has 36 airports, 11 of which are international. The country’s principal airport, Algiers Houari Boumédiene Airport, has annual passenger traffic estimated at 4m, with 2.5m international and 1.5m domestic travelers. The majority of international traffic, 66.35%, comes from Europe, most of that from France. The next largest markets are the Middle East (18.6%), Africa (13.54%) and North America (1.51%). Due to high tariffs, business travelers constitute the bulk of domes-tic clientele and the most popular destinations from Algiers are Oran (21.8%), Hassi Messaoud (17%), Constantine (16.9%) and Annaba (15%). Algiers is the country’s hub for international airlines, with 15 foreign and 2 local carriers operating out of the capital.

Algiers is also the principal destination for freight traffic, receiving 20,000 tons of international and 2600 tons of domestic freight in 2008. To develop air freight the state-owned Airport Service and Infrastructure Company (Société de Gestion des Services et des Infrastuctures Aéroportuaires, SCSIA) has a 40,000-sq-metre cargo village project in the pipeline for the Algiers Houari Boumédiene Airport. “Due for completion by 2012, the cargo village will provide space for the arrival of increased air freight to Algeria. For the moment 75% of freight comes on passenger flights, which is very limiting,” Swissport Algeria’s general director, Fernand Stauffer, said. A subsidiary of Spain’s Ferrovial, Swissport has been in Algiers since 2007, when it ended Air Algérie’s position as sole player in the market. The SGSIA was created in 2006 to manage Algiers’s airport, and contracted operations to France’s Aeroport de Paris Management (ADP) for a four-year period After the contract ends the SCSIA will take over operations from ADR but it is presently learning the ropes so that it can continue to match the airport’s management with international standards.

Swissport has been contracted to provide Algiers’s airport with ground services. The company’s services include passenger check-in, as well as baggage and freight handling. “Seven regular operators use our services. We are currently negotiating with several carriers and expect a 30% increase in operations for 2010,” Stauffer told OBG. Though the liberalization of ground operations remains limited to Algiers, as the number of international airlines operating in Oran increases, it too may see privatization policies.

Airlines are expanding flight networks to meet growing business and leisure demand In April 2008 Lufthansa added three new weekly flights between Algiers and Frankfurt, while Air Algérie added the Algiers-Dakar line, as well as an additional weekly connection to Montreal and two new weekly flights to Beijing. Air France’s and France’s Aigle Azur, a subsidiary of the Go Fast Group, also increased summer flights. Meanwhile, French charter airline Air Méditerranée’s entry has increased competition for the French market, particularly during these summer months that see an influx of Algerian expatriates traveling from France. Air Méditerranée first entered the Algerian market in July 2009 with two flights weekly between Paris and Oran. The airline is also planning to launch weekly flights from Paris and Marseille to the desert cities of Timimoun and Ghardaїa in the first quarter of 2010, with the possibility of increasing flight frequencies according to demand. Chartered out by French Tour Operator Point Afrique, the airline will operate from October through April and contribute to developing the Saharan tourism niche.

In face of growing competition Air Algérie has embarked on a massive development campaign, which aims at nearly doubling passenger numbers from the current 3.2m to 6m by 2014. To increase its market share the national carrier is expanding its international flight network, with particular emphasis on consolidating French routes. The company is also working on improving customer service and has dedicated some €47m to revamping aircraft cabins, whereas, the larger ones will strengthen its international routes.

“Air Algérie is expanding its 32-aircraft fleet and will have 11 new commercial liners, including four narrow-body and seven medium-body aircraft, in late 2010,” said Air Algérie’s general director, Abdelwahid Bouabdallah. The small aircraft will be used to enhance the domestic network by increasing flights on the most popular segments, such as Algiers and Oran, and other destinations will be added as tourism develops.

Aigle Azur currently operates out of 13 airports in Algeria, and the Algerian market represents 40% of the company’s annual turnaround. In March 2009 the company launched its Paris Charles de Gaulle-Oran service and that summer boosted flights to Algeria by 30%, with a new weekly service between Lille and Oran that attempts to capitalize on the growing demand for direct flights to Oran. Aigle Azur will add two new Airbuses to its fleet by 2010, and the company is awaiting the further liberalization of the domestic aviation market.

Though Tassili Airlines (TAL) was scheduled to start regular flights on the domestic market and end Air Algérie’s current position as the only local operator of scheduled routes, the airline is now working to expand its fleet and has suspended the launch of commercial operations until 2010. In July 2009 TAL ordered seven new jets and aims to expand its fleet to 43 aircraft from 11 in the medium term. A subsidiary of state-owned energy company Sonatrach, TAL specializes in transporting workers for the oil industry.

MARITIME: Maritime transport is a central pillar of the national economy and 90% of Algeria’s commercial trade transits through the national port network. Algeria has 14 commercial ports, including 10 multifunctional and four specialized in hydrocarbons. According to Ministry of Transport statistics, maritime traffic decreased slightly in 2008, reaching 128.2m tons, down from 130.3m tons in 2007. This downward trend is mainly due to a decline in hydrocarbons traffic, which decreased 5.98% in 2008. Imports and exports however grew 14.89% and 12.65% respectively, and container traffic increased from 897,806 twenty-foot equivalent units (TEUs) to over 1m TEUs in 2008. Passenger traffic fell to 726,122, down from 858,324 in 2007, a decline that can mainly be attributed to an increase in affordable flights from Europe.

Specialized in hydrocarbons traffic, Arzew is the country’s most active port. It is in the process of being expanded with a marine export terminal to meet upcoming demand from the new urea and ammonia plant also currently under construction. The $268m engineering, procurement and construction (EPC) contract for the project was awarded to Italy’s Saipem in May 2009 and the terminal is due for completion 2011.

Outside of hydrocarbons traffic Algiers is the nation’s largest port and receives a 59% share of container traffic, followed by Oran (14%), Bejaїa (11%) and Skikda (10%). In 2008 Algiers handled 606,000 TEUs, up from 530,526 TEUs in 2007. Privatization of operations in March 2009 is in anticipation of significantly increasing port productivity. Dubai Port World (DPW) was awarded the 30-year management contract to run the port of Algiers in November 2008.

“The privatization of Bejaїa was a success, and there is good reason to believe that the arrival of DP World will increase efficiency, although the port’s physical layout may put a ceiling on capacity.

DPW also took over operations at Djen Djen in June 2009, and is set to transform the port into a transshipment centre for the Mediterranean. Under the concession agreement DPW is committed to extending the existing berth and building a large-scale container terminal. The port’s development is a central part of the country’s long-term development strategy, and is expected to attract significant investment to the region, creating thousands of new jobs.

Created in 2002, SOGEPORT is charged with overseeing the port privatization process. Following the creation of Bejaїa Mediterranean Terminal, a joint venture between Singapore’s Portek (49%) and the Bejaїa Port Authority (51%) in 2004, container traffic has increased ten-fold from 12,000 TEUs to 116,000 TEUs in 2008. Though Algiers continues to receive the bulk of container traffic, “many logistics firms, including Maersk Line, are trying to encourage customers to ship to Bejaїa.

Port management partnership is also in process for Oran’s port extension project and is expected to be discussed over the course of 2010, Kellil said. To meet growing container traffic demand and help reduce some of the pressure on Algiers, annual container handling capacity is being extended from the current 150,000 TEUs to 550,000 TEUs and handling equipment over-hauled. Construction is due to start in end-2009 and the extension is scheduled for completion in 2011.

Over the next decade maritime traffic in Algeria is to be considerably redistributed, with the Port of Algiers primarily dedicated to domestic traffic, while the ports of Djen Djen, Bejaїa and Oran specialize in container traffic. “Rather than looking at Algeria’s direct neighbors, the plans to modernize and extend the port of Oran are benchmarked against that of Barcelona and Marseille. The master plan for modernization and extension of the port has been submitted to the national authorities with a decision due to be taken before the end of 2010.

Additionally, to enhance connectivity with the wider national transport network, logistical platforms are in the process of being created. “Since Algerian ports are the gateway for 90% of the country’s commercial exchanges, there is potential for developing logistical hubs around ports and expediting merchandise directly to industrial operators via the rail network. Negotiating are underway with international players for the creation of logistics platforms at the port of Skikda, followed by Bejaїa, Algiers, Oran and Ghazaouet.

RAIL: The rail network covers 3572 km, of which only 283 km are electrified. Passenger traffic decreased slightly in 2008, from 19m passengers in 2007 to 18.9m. However, the national rail network is being rehabilitated and expanded for passenger and freight transport, and the National Rail Transport Company (Société Nationale des Transports Ferroviaire, SNTF), charged with operating the national network, forecasts sustained growth in passenger traffic in the short to medium term. “By 2025 the national rail network will stretch 11,210 km and be entirely electrified.

Created by presidential decree in 2005, the ANESRIF is charged with overseeing the ambitious plan to extend the national rail network. ANESRIF was allocated €13.2bn under the five-year (2005-2009) Complementary Program for the Support of Economic Growth (Programme Complémentaire de Soutien à la Croissance Economique, PCSC). It will receive an additional €23bn under the 2009-14 five-year plan.

ROAD: Extending over 108,300 km, Algeria boasts the most extensive road network in the region and 85% of domestic commercial exchanges and travel take place via the public road and highway system. However, with the main urban centres situated along the coast, the northern road and highway network is heavily congest-ed. Designed to reduce gridlock in the highly populated coastal areas, the Ministry of Public Works (MoPW) launched the East-West Highway project in 2005.

Due to be fully operational in December 2009, the €8bn East-West Highway is Algeria’s biggest public works project to date. Launched under the 2005-09 PCSC, the 1300-km highway stretches from Annaba, close to the Tunisian border in the east, to TIemcen near the Moroccan border in the west. Built to European standards, the six-lane highway will link the country’s major cities, including Constantine, Algiers and Oran. The flag-ship project includes construction of 486 bridges, 70 overpasses and 13 tunnels, and as of August 2009, 90% of construction had been completed. According to a study undertaken by the MoPW, the highway will have the capacity to absorb 85% of national traffic, including 50% of truck traffic. With speed limits reaching 120km per hour, travel time between Annaba and TIemcen will be reduced to 10 hours. In addition to easing coastal traffic and promoting domestic investment and trade, the East-West Highway also links into the 7000-km Trans-Maghreb Highway, which will eventually stretch from Libya to Mauritania.

URBAN NETWORKS: To reduce road congestion in large urban centers public transport networks are being expanded. The biggest projects in the pipeline are the Algiers metro and Algiers, Oran and Constantine tramway networks. The Algiers Metro Company (Entreprise du Métro d’Alger, EMA), which manages the country’s urban transport projects, oversees the development of these projects. In the pipeline for over 20 years, the Algiers metro is due to open in 2010.

Construction of the 9-km line running between Tafourah Grande Poste and Haї El Badr was completed in July 2009. France’s Régie Autonome des Transports Parisiens (RATP) has been awarded the contract to manage the metro system for three years. Open between 5am and 11pm daily, the underground system will operate 14 six-wagon trains, running at two-minute intervals during peak hours.

Running along the capital’s most congested axis, the metro is expected to transport between 150,000 and 200,000 passengers daily, significantly reducing traffic in the city centre. By 2010 an estimated 60m passengers are expected to travel by metro. Ticket prices will be AD30-35 (€0.31-0.36).

Construction of the metro’s first extension began in October 2008 and is due for completion in May 2011. EMA awarded the €225m civil engineering contract to a consortium composed of Germany’s Dywidag International, Algeria’s Cosider and Italy’s Trevi in July 2008. The 4-km extension will add four stations, linking Haї El Badr to Harrach Centre where it will connect with the suburban train system.

OUTLOOK: Algeria’s transport infrastructure is under-going a substantial makeover. An integrated air, maritime and land transport network is being built, with a number of large-scale projects currently under way and more in the planning stages. In the long term these projects have the potential to position Algeria’s trans-port infrastructure as among the most dynamic, helping to grow industry and develop the tourism sector.

CREATIVELY MAKING SPACE

A temporary terminal is being built at Oran’s Es Sénia airport to reduce the strain on the existing terminal caused by increased travelers. The government envisions growing passenger flows through the airport, as Oran plays host to future conventions and conferences. The project was achieved to accommodate the influx of visitors who participated in the 16th International Conference and Exhibition on Liquefied Natural Gas (LNG-16) in April 2010. The terminal is designed to host as many as 3000 conference attendees, a typical number at these events, 2500 of whom are delegates, accompanied by 200-500 exhibitors. The LNG Conference is the world’s largest LNG industry event.

Oran is the country’s second-busiest airport after Algiers and received an estimated 900,000 passengers in 2008. Construction of this temporary terminal will enable the Es Sénia airport to expand its total passenger capacity and boost infrastructure to international standards without the large investment needed for building a permanent terminal.

Algeria’s national oil and gas company, Sonatrach, awarded the €9m terminal design-and-build contract to French aviation consulting and engineering firm Egis Avia, in partnership with Germany’s Röder. Designed according to international standards, the structure is essentially a 5000-sq-metre tent constructed out of metal and fire-resistant textiles.

With a total annual capacity of around 400,000 passengers, the temporary terminal will be divided into two zones. The arrivals zone will include baggage claim, police and Customs controls areas, While the departures zone will have integrated registration, reception and information areas, as well as a VIP lounge. All airport equipment will be provided by airport management firm Entreprise de Gestion des Services Aéroportuaires (EGSA), in partnership with Sonatrach. A 7000-sq-metre marking area is also being built to accommodate -creased traffic flow. With separate access gates, the new parking area will be independent from the existing airport parking.

Other infrastructure modernization projects for the Es Sénia airport include the construction of a second runway, measuring a total length of 3000 meters, and the extension of the existing runway. Both projects were completed in August 2009. The tasks were contracted by Zagope, the Portuguese subsidiary of Brazilian construction company Andrade Gutierrez, in partnership with a local company, Enterprise Sahraoui, which had a participation of 10% in the contract. A further project to extend the existing freight terminal to receive daily arrivals of wide-body aircraft is also planned.