French Monopoly on French Maritime Transport
Before granting the monopoly of maritime transport of goods destined for Algeria to CMA-CGM, the maritime carriers from Northern Europe serving Algeria were MAERSK, MSC, CNAN, and CMA-CGM. Why is the latter the only operator?
The answer is quite simple and lies with Algerian politicians. The latter, wanting to punish Spain for supporting the Western Sahara autonomy project under Moroccan sovereignty, excluded other competitors from the market even though they were not Spanish. Their mistake is that their transshipment ports are Valencia in Spain and/or Tangier in Morocco.
As for CMA-CGM, which has taken over the monopoly, its transshipment port is Malta. A monopoly means a good commission, “tchipa,” but that won’t bother the Algerian. However, the average citizen will suffer the consequences.
Obviously, the cost of transport is significantly higher than transshipment through Valencia or Tangier. But, for purely political reasons, Algerian authorities prefer to lose money rather than deal with countries classified as enemies. They confirm that politics and economics do not mix well. This was already evident with the closure of the GME gas pipeline, which has been closed since October 31, 2021.
In other words, Algeria’s support for the Polisario is very costly for the Algerian public treasury. In addition to funding arms, Polisario representations abroad, and the “refugee” camps costing over a billion dollars annually, the Algerian economy loses a lot of money just in maritime transport.
It should be noted that in terms of political sanctions, the Algerian regime is selective. Even though France recognizes Moroccan sovereignty over Western Sahara, it continues to benefit from Algerian economic privileges. The example of CMA-CGM is a perfect illustration.
The transit time for CMA-CGM before the monopoly was +/-14 days and is now 67 days. The reasons are clear:
- CMA-CGM’s volume has tripled, as container volume on the Malta-Algeria line has tripled, to the point that it takes more than 30 days to reload a container in Malta for Algeria.
- Their ships must wait a week to enter the port (congestion) and another week to unload 200 containers.
This is CMA-CGM’s response to their clients in addition to the global maritime traffic change at the currently blocked Suez Canal.
In contrast, in Northern European ports, a 10,000-container ship enters directly into port and takes 24 hours to unload its 10,000 containers.
Algerian ports are poorly managed, and this is not due to the workers but 100% due to the management style. Port companies are state-owned public limited companies, 100% of the shares of which are held by the state; a disguised form of a state company. With this form, the CEO of these companies is appointed by the state, and the quality of his management is more political than economic. These companies have a public interest, but the state could hold between 20 and 40% of the shares to follow public interests, but the choice of the CEO is the responsibility of shareholders, 60 to 80% of whom are private (Algerians or foreigners, private Algerians or Algerian companies). These shareholders will choose a CEO who will deliver a report with a profit of at least 25%. This CEO, with a one-year contract, will certainly surround himself with the most competent managers he can find and will not choose managers recommended or imposed by high state officials. This CEO will easily renew the company’s fleet, including fixed and mobile cranes, various machines, etc. Like in Northern Europe, there are private handlers, but the port company will have another mission, not that of handlers with unloading docks and their equipment.
CNAN has been practically sabotaged. In 1994, CNAN had 06 ships per month, thus 72 ships per year. Ask how many remain in 2023: 03 ships! Of course, the poor management is 100% due to the choice of CNAN’s CEOs and its representatives abroad by the state.
The creation of another private Algerian transport company is prohibited. However, foreign carriers are allowed to transport Algerian goods to Algerian ports.
