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 2010OpportunitiesTransit platformbetween Europeand AfricaIncrease inlogisticssubcontractingMisurata PortIntegration of theMaghreb<strong>The</strong> government’s objective is to maximize the opportunities offered bythe country’s geographic location, the potential of its infrastructure andits ability to understand and cater for the needs of operators and importand export companies to the north and south to become a transitplatform between Europe and Africa.Although 80% of road transport is already subcontracted, there is still alarge opening for the subcontracting of transport-organization servicesand cargo handling, which is at present in the hands of public and privateindustrial and commercial companies.Misurata Port, along with its large free zone, represents a competitiveadvantage for the Libyan logistics sector and would be even more so ifthe country acted more decisively on the internationalization of itseconomy.<strong>The</strong> operators interviewed felt that this process would have positiveeffects on the Libyan logistics sector, both in terms of expanding themarket (and its ability to draw traffic to the region) and in terms ofboosting the competitiveness of the companies.ThreatsRegionalcompetitionCompetition fromEurope for AfricanmarketsLiberalization andglobalizationprocessesInsufficientdiversification ofthe economyEgypt and Tunisia are Libya’s strongest potential competitors in itsdomestic logistics market. Port Said in Egypt is considered to be theregional maritime hub most able to attract traffic to and from Asia.Ports and airports in Southern Europe have greater logistics capabilityand will also represent direct competition for traffic to and from NorthAfrica and Sub-Saharan countries.Although there is a general trend towards liberalization and privatizationof economic activity (including a focus on developing the touristindustry), this process is inconsistent and there are still significantrestrictions.This is having a major impact on Libya’s logistics capacity, as generalcargo requires higher levels of service and professional skills.StrengthsGood infrastructureand infostructureEuropeanoperators settingup in LibyaEfficient publicoperatorsThis is Libya’s main advantage and one that places it in a favourableposition in comparison to neighbouring countries. <strong>The</strong> investmentprogrammes currently being implemented will improve Libya’s positionstill further.<strong>The</strong>re remain very few foreign transport and logistics operations withoffices in Libya. However, the country’s infrastructure, social stability andformal business methods may in the future attract European and otherforeign companies in the industry to set up operations in Libya.Libya does not suffer from a reliance on numerous inefficient publicoperators; rather, the two large companies in the industry (the SPC andthe GMNTC) are efficient, modern operators.CETMO 175