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 2010services put pressure on improving the logistics sector. In the case of Algeria andLibya, there is a major imbalance in favour of energy-product exports. In Mauritania,iron, copper, gold, oil and fish represent more than 97% of total exports.<strong>The</strong> practically total predominance of traditional, local trade and the weakdevelopment of modern commercial distribution is common to all five countriesstudied. Wholesalers control imports and logistics of consumer goods.<strong>The</strong>re is a noticeable, widespread effort to liberalize and improve the regulatorycontext of the transport sector, and to define the professions in logistics. However,procedures remain complex, particularly in Algeria. In addition, a number of Ministershave input in the sector. Operators would like to see better coordination, with theMinistry of Transport taking control. Stronger control of the enforcement of standardsis another requirement common to all the Maghreb countries.In terms of the players involved in the logistics sector, particularly public and privateoperators, the most typical features of the current situation are the following:<strong>The</strong> road transport sector is highly fragmented in all the countries and, moreimportantly, there is no critical mass of structured companies. In Morocco and Algeria,there are two public operators, although they no longer have much market power.<strong>The</strong> process of liberalization has not been accompanied by stricter controls onprofessionalism or by strategies encouraging the creation of structured companies.In the case of the central Maghreb, rail transport is the monopoly of nationalcompanies and there are no private intermodal operators. In Libya, there are no railservices yet and in Mauritania, the railway is used as an additional means of transportfor the State mining industry.Maritime transport is largely dominated by international shipping companies presentthroughout the Mediterranean basin. In Tunisia and Algeria, the national shippinglines (Compagnie Tunisienne de Navigation, CTN and Compagnie NationaleAlgérienne de Navigation, CNAN) still retain a significant share of the market. This isalso the case in Libya, where the national shipping line transports 80% of thecountry's oil.<strong>The</strong> port sector is gaining importance in the area of handling, thanks to the presenceof several major international players working alongside national companies and/orthe port authorities, which still carry out this type of activity.<strong>The</strong>re are still only a few national logistics operators, as we understand them inEurope. Few foreign companies are present.Lastly, in terms of the situation regarding services, the most obvious common features arethe following:<strong>The</strong> market share for road transport operated by self-employed individuals with theirown vehicle is still very high (greater than 40%) in all the central Maghreb countries.In Morocco and Algeria, unofficial transport, which does not meet regulations, is verywidespread. Specializations such as refrigerated transport, the transport of hazardousgoods and freight consolidation have been developed very little and answer only tovery loose quality requirements. European operators control international freight. Inthe case of Libya and Mauritania, road transport operated by self-employedindividuals with their own vehicle is less extensive and barely reaches 20%, althoughin Mauritania there is a crisis in the public transport market following liberalization.CETMO 21