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• More than two-thirds of the population is concentrated on the coast. Libya’s major citiesare Tripoli, whose metropolitan area is home to around 2 million people, and Benghazi,which has around 800,000 inhabitants. Both are port cities.• Per-capita income in 2008 was US$12,380, the highest in the Maghreb. Only a very smallpercentage of the population lives below the poverty line.Trade• Libya’s principal exports are oil and oil derivatives and gas. Its largest export markets areItaly, Germany, Spain and France.• Libya’s imports are concentrated in the following areas: machinery, transport equipment,food products, semi-finished products and consumer goods. Its main commercialpartners are Italy, Germany, China, Tunisia and Turkey.Commercial Distribution• As in other Maghreb countries, commercial distribution is dominated entirely by smalllocal retailers. Importing is controlled by wholesalers, who have their own warehouses.<strong>The</strong> State attempted to create a network of department stores but abandoned the project.• No large foreign commercial-distribution chains are present.Government Economic Policy and the External Political Context• <strong>The</strong> development model adopted by the government is that of using oil to provide growth,diversify the economy and reduce unemployment while improving income distribution.• From an external point of view, Libya wants to maximize the opportunities offered by itslocation in the centre of the Mediterranean and its geographical alignment with CentralEurope by acting as a platform between Europe and Africa.• Infrastructure development, particularly in the transport and logistics sector, is one of thegovernment’s main objectives. As a result, new port and airport infrastructure is beingbuilt, the coastal motorway connecting all the major cities is being doubled in size andthe country will construct its first two railway lines, one going along the coast and theother going south into the interior.Administrative and Regulatory Context of the <strong>Logistics</strong> <strong>Sector</strong>• <strong>The</strong> main instrument of State intervention in the logistics sector is the Ministry ofTransportation.• In terms of basic legislation applicable to the transport and logistics sector, Libya has alaw relating to road transport and another relating to maritime transport that also coversport activities. <strong>The</strong>se laws are reviewed every five to six years. <strong>The</strong>re are no regulationsthat can be applied to forwarding agents or logistics operators.• Libya is not a signatory of the TIR Convention and forwarding agents have reporteddifficulties in transporting goods to countries within the ATA system.• Although there are few formal barriers for foreign companies wishing to open offices inLibya, there are few such companies in the logistics industry. <strong>The</strong> main difficulties relateCETMO 41