The Logistics Sector on the Southern Shores of the Western ... - cetmo

<strong>The</strong> <strong>Logistics</strong> <strong>Sector</strong>on the Southern Shores of the Western Mediterranean October 2010<strong>The</strong> Libyan government’s main strategic approach is the development and modernization ofan infrastructure that supports the activities of all modes of transport. <strong>The</strong> chief elements ofthis strategy are as follows:• In terms of road infrastructure, Libya has a network of roads some 34,000 km in length, ofwhich 4,000 constitute a base network. Over the next three years 10 billion Libyan dinars(approximately 5.8 billion euros) will be invested in the creation or improvement of threemajor north-south routes and three east-west routes. Moreover, a strategy has beendeveloped and funds have been allocated to a project to reduce the number of accidentson Libya’s roads.• In terms of rail transport, projects are being implemented to create the country’s first railnetwork, which will be over 3,100 km long and boast two lines: one going along the coastand the other going into the interior. Progress has already been made in this investmentprogramme with the signing of contracts to build 2,000 km of track.• <strong>The</strong> government also has a 2010-2012 investment plan for the port industry with anumber of objectives: lengthen the wharves and increase the storage areas and draught.<strong>The</strong> plan also aims to solve the accessibility problems of Tripoli and Benghazi ports,which experience the greatest difficulties with traffic in their respective cities. Moreover,two new ports will be created (Zwara and Sirte, the latter to be offered to an investor), oralternatively others such as Misurata, Tobruk and Derna will be expanded, while two newcontainer terminals will be built at Tripoli and Alkhoms. After the plan has beenimplemented, the general-cargo handling capacity of Libya’s port system will increasefrom 14 to 25 million tonnes per year.• <strong>The</strong> government also wants to create three logistics zones in the east, centre and west ofthe country. At present the idea is still undergoing feasibility studies and locations arebeing examined, although there are no problems anticipated in terms of available land(with the exception of Tripoli). In terms of current improvements in the road system, twoyears ago a public company was set up to build petrol stations and parking areas alongthe road network, while two inland ports linked to Tripoli and Benghazi ports are to bebuilt.In addition to infrastructure, the government is also working on improving the regulatoryframework and incorporating ICTs into the port environment. For the first action, thegovernment is drawing up laws for rail transport and intermodal transport and laws thatrecognize forwarding agents, among other issues. In terms of improving import and exportprocesses, projects are being implemented to create a PCS model and implement the LSW.Continuing with the theme of ideas, the intention of the Libyan government is to turn thecountry into a transit platform between Europe and Africa, by air as well as by sea and land.To this end, the government is building new airports and a railway line going towards thesouth of the country.At present there is no modernization programme for transport companies, nor are theremechanisms to facilitate relationships between the government and the different operatorsother than contact between individuals.3.3.2 <strong>The</strong> Perspective of Public and Private Operators in Libya<strong>The</strong> section below presents the perspective of the public and private operators interviewedon the subject of modernizing their companies and industries. It also presents their opinionson the plans of the Libyan government and on the areas requiring the most attention.CETMO 141