DP World, the Dubai-based global ports operator that has just begun work at the container terminal in Algiers port, says it will reduce ships’ waiting time from up to three weeks now to four days by the beginning of next year.

High demurrage costs caused by long periods waiting at anchor and to unload make Algiers one of the costliest Mediterranean ports.

Mohamed Al Khadar, general manager of DP World Algeria, says it costs €280 ($365) to ship a container from the UK to New York but to ship one from France to Algeria costs €600.

The company, which has a 30-year concession to operate the terminal, says it is committed to upgrading the port’s infrastructure, installing new equipment and an IT system as well as modernising unsafe and inefficient working practices.

DP World is operating the port under a 50/50 joint venture with EPAL, the Algerian ports authority.

Mr Khadar says the aim is to increase Algiers’ handling capacity from an annual 400,000 TEU (20-foot equivalent unit) to 700,000 TEU.

But the company has met resistance. As soon as it took over management in March, 300 dockers staged two days of strikes to protest against a new shift system.

Mr Khadar says one reason the port has been inefficient is that it is not operated 24 hours a day or during weekends and holidays. He believes uninterrupted operation is necessary to reach DP World’s target of an average of 1,600 containers unloaded a day. At present the rate is 250-300.

Another reason for inefficiency, he says, is that the yard is congested because of lengthy customs clearance procedures.

“There are currently too many sectors controlling the port,” he says. “I have a chart that shows there are 13 stakeholders in this port. So I am married to 13.”

DP World is part of another joint venture in Algeria to build a deep water port in Djendjen in the east of the country. The aim is to create a trans-shipment hub with an annual capacity of 1.5m TEU to compete with Tangiers in neighbouring Morocco.

Where to start?

First, I have very strong doubts that the JV with the Algerian ports authority is going to be a happy marriage, as all the signs are that Algerian JVs are like American marriages; the Algerian authorities just do not know how to learn to get along.

Second, given Comb Over & The Generals are in full out pimping populism mode, it is hard to believe that the spoilt, self-indulgent public unions are going to cave to any of the highly necessary reforms in work practises and I would expect that they will do as much as they can to "go slow.:

Third, on the customs issue. What can be said other than a cretinous Quasi Soviet approach to customs clearing seems to serve no purpose but in lining certain highly placed officials pockets, and at the same time gives the state various criminal levers over everyone ranging from the private banks (Citi, BNParis Bas) to major investors (think telecom).

My perhaps rash prediction, this is going to prove a most unhappy experience as DPW (based on this arty and what I have heard otherwise) has gotten itself in without all the necessary freedoms that are required to make such efforts a success.

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