The Algerian government has approved plans for the construction of a new USD $3.3 billion deep water port facility at the industrial zone of El Hamdania.
According to African Business Magazine the project is an attempt to emulate the success story of the Moroccan Tanger Med project that thus far has been a worthwhile investment and when fully completed in 2018 will be the busiest port on the Mediterranean.
The port is being developed by China Harbour Engineering, and China State Construction Engineering Corporation, who combined will hold a 49% stake in the operating company. The remaining 51% stake will be taken by the Algerian Ports Authority, who have reportedly managed to garner $900 million in funding from the African Development bank. Additional funding will come from a consortium of Chinese banks. Whether the privatisation aspects of the port will cause any conflicts of interest remains to be seen.
The port development plans suggest that construction will be done over two phases, with intentions for 23 berths that have a total handling capacity of 6.3 TEU. The deep-water facility will be located 70km west of Algiers and its projected TEU capacity would make it the second busiest port in Africa after Tanger Med.
Construction is set to begin in March this year (2017), with an estimated final completion date of 2021. The port will seek to attract transhipment business primarily from West Africa and Europe.
In November last year (2016), PTI reported on CMA CGM's plans to develop shipping in Algeria.