Algerian President Tebboune meets with CMA CGM CEO for unspecified projects, amidst ongoing diplomatic turmoil with France.
Algeria's President Abdelmadjid Tebboune sat down with Rodolphe Saadé, CEO of French shipping giant CMA CGM, on Monday, June 2. The conversation revolved around a potential multi-billion euro investment program aimed at bolstering CMA CGM's presence in Algeria.
After the meeting, Mr. Saadé, speaking on Algerian television, emphasized his faith in Algeria's development, stating it had immense potential. He vowed to tackle operational hurdles and tread in the right direction, yet remained tight-lipped about the specifics of his plans in Algeria.
The financials for CMA CGM have been looking up, with the company posting a staggering 43% increase in net profit to $1.1 billion (€1 billion) in the first quarter.
Initially scheduled for a mid-April visit, Mr. Saadé's Algeria excursion was postponed amid escalating tensions between Paris and Algiers.
According to El Watan, the CMA CGM group intends to inject "several billion euros" into Algeria in the medium term, by means of modern port infrastructure, container terminals, and active involvement in logistics management. The French-language daily also hints at a potential maritime line between Marseille and Oran, operated by La Méridionale, a subsidiary of CMA CGM, which may generate roughly 2,000 direct jobs[3].
CMA CGM, already operational in nine Algerian ports, including Algiers, Annaba, Bejaia, Skikda, and Ghazaouet, aspires to move to a higher plane by securing control over a strategic terminal in Algeria.
Diplomatic relations between Algeria and France have been strained for over ten months, since French President Emmanuel Macron expressed support for a plan advocating Moroccan autonomy in Western Sahara, where Algiers backs the Polisario independence movement. Since then, tensions have escalated, marked by the arrest of Franco-Algerian writer Boualem Sansal in mid-November and Algeria's refusal to accept influencers expelled from France for threatening Algerian opponents[3].
This escalating diplomatic crisis culminated in the expulsion of diplomats on both sides and restrictions on diplomatic visas for holders.
Upping the Ante
In spite of the ongoing diplomatic crisis, CMA CGM is looking to level up its involvement in Algeria. Specific projects for Algeria include:
- Oran: A regional logistics powerhouse: CMA CGM intends to transform Oran into a significant logistics center in the Mediterranean[1].
- Port Logistics Zones Development: The company is negotiating the development of port logistics zones and acquiring shares in Algerian ports for improved management[2].
- Marseille-Oran Maritime Line: Through La Méridionale, a subsidiary of CMA CGM, the group is initiating a maritime line between Marseille and Oran. This service will facilitate trade and passenger flow between Southern Europe and Algeria, increasing connectivity[1].
These projects form part of CMA CGM's broader ambition to augment its African port operations and target lucrative North African markets and trade corridors to sub-Saharan Africa[4]. All these initiatives point toward CMA CGM's unwavering resolve to reinforce economic ties and position Algeria as a key player in international commerce[5].
- Despite the ongoing diplomatic crisis between Algeria and France, CMA CGM, a French shipping giant, plans to elevate its presence and influence in Algeria.
- One of CMA CGM's goals is to turn Oran into a major logistics center in the Mediterranean region.
- In addition, the company is negotiating the development of port logistics zones and acquiring shares in Algerian ports to improve management.
- CMA CGM is also initiating a maritime line between Marseille and Oran through its subsidiary, La Méridionale, which aims to improve trade and passenger flows between Southern Europe and Algeria.
- As part of its broader ambition to expand its African port operations, these projects illustrate CMA CGM's determination to strengthen economic ties and establish Algeria as a significant player in international commerce.
