October 2010<str<strong>on</strong>g>The</str<strong>on</strong>g> <str<strong>on</strong>g>Logistics</str<strong>on</strong>g> <str<strong>on</strong>g>Sector</str<strong>on</strong>g><strong>on</strong> <strong>the</strong> Sou<strong>the</strong>rn <strong>Shores</strong> <strong>of</strong> <strong>the</strong> <strong>Western</strong> Mediterranean<str<strong>on</strong>g>The</str<strong>on</strong>g> Ministry <strong>of</strong> Ec<strong>on</strong>omy and Trade<str<strong>on</strong>g>The</str<strong>on</strong>g> Ministry <strong>of</strong> Industry and MineralsCustoms and o<strong>the</strong>r border-c<strong>on</strong>trol servicesInfrastructure managers• <str<strong>on</strong>g>The</str<strong>on</strong>g> Directorate <strong>of</strong> Administrati<strong>on</strong> <strong>of</strong> Land Transport, for roads• <str<strong>on</strong>g>The</str<strong>on</strong>g> Port Authorities <strong>of</strong> each port• <str<strong>on</strong>g>The</str<strong>on</strong>g> future State-owned company for rail transportBanks and <strong>the</strong> finance industryTechnology platforms• <str<strong>on</strong>g>The</str<strong>on</strong>g> Ministry <strong>of</strong> Transportati<strong>on</strong> has begun a project to create a Port Community System(PCS) that will electr<strong>on</strong>ically c<strong>on</strong>nect all <strong>the</strong> operators, port authorities, customs, etc.Fur<strong>the</strong>rmore, <strong>the</strong> Ministry <strong>of</strong> <strong>the</strong> Ec<strong>on</strong>omy is c<strong>on</strong>sidering <strong>the</strong> creati<strong>on</strong> <strong>of</strong> a Single WindowSystem to facilitate internati<strong>on</strong>al trade operati<strong>on</strong>s.O<strong>the</strong>r AgentsPr<strong>of</strong>essi<strong>on</strong>al bodies• <str<strong>on</strong>g>The</str<strong>on</strong>g>re are no pr<strong>of</strong>essi<strong>on</strong>al associati<strong>on</strong>s in <strong>the</strong> transport industry, nor have operatorcommunities been organized in <strong>the</strong> ports.Technology centresChambers <strong>of</strong> Commerce / employers’ organizati<strong>on</strong>s• General Uni<strong>on</strong> <strong>of</strong> <strong>the</strong> Chambers <strong>of</strong> Commerce Industry and Agriculture1.3.3 Provisi<strong>on</strong> <strong>of</strong> <str<strong>on</strong>g>Logistics</str<strong>on</strong>g> Services in LibyaIn order to describe <strong>the</strong> activity <strong>of</strong> public and private operators (which c<strong>on</strong>stitute <strong>the</strong> nucleus<strong>of</strong> <strong>the</strong> logistics cluster), <strong>the</strong> different transport and logistics services markets in Libya aredescribed below. <str<strong>on</strong>g>The</str<strong>on</strong>g>se descripti<strong>on</strong>s pay particular attenti<strong>on</strong> to <strong>the</strong> most vital elements and,as such, those which require <strong>the</strong> most effort to modernize.Road TransportMarket Structure• <str<strong>on</strong>g>The</str<strong>on</strong>g>re are two markets: <strong>the</strong> public transport market and <strong>the</strong> private transport market.Complementary private transport accounts for approximately 20% <strong>of</strong> total road freighttransport. In general, <strong>the</strong> private fleets bel<strong>on</strong>g to large State-owned industrialcompanies such as <strong>the</strong> Nati<strong>on</strong>al Oil Corporati<strong>on</strong>, <strong>the</strong> Steel Company, <strong>the</strong> Nati<strong>on</strong>alMining Corporati<strong>on</strong> and <strong>the</strong> Libyan Cement Company.<str<strong>on</strong>g>The</str<strong>on</strong>g> remaining 80% corresp<strong>on</strong>ds to <strong>the</strong> public transportati<strong>on</strong> <strong>of</strong> freight. All <strong>of</strong> <strong>the</strong>seservices are provided exclusively by private companies.44 CETMO
<str<strong>on</strong>g>The</str<strong>on</strong>g> <str<strong>on</strong>g>Logistics</str<strong>on</strong>g> <str<strong>on</strong>g>Sector</str<strong>on</strong>g><strong>on</strong> <strong>the</strong> Sou<strong>the</strong>rn <strong>Shores</strong> <strong>of</strong> <strong>the</strong> <strong>Western</strong> Mediterranean October 2010Strictly speaking, <strong>on</strong>e cannot speak <strong>of</strong> informal transport in Libya because, in <strong>the</strong>case <strong>of</strong> self-employed individuals, <strong>the</strong>re is no licensing or c<strong>on</strong>trol <strong>of</strong> activities by <strong>the</strong>Ministry <strong>of</strong> Transportati<strong>on</strong>.• <str<strong>on</strong>g>The</str<strong>on</strong>g> market for freight transport by road is growing significantly and <strong>the</strong>re is a need fornew road infrastructure and equipment to cope with <strong>the</strong> increase in traffic.• In terms <strong>of</strong> prices, <strong>the</strong> Ministry <strong>of</strong> <strong>the</strong> Ec<strong>on</strong>omy sets a maximum but not a minimum.Fur<strong>the</strong>rmore, <strong>the</strong>se prices are not respected and <strong>the</strong>re are no c<strong>on</strong>trols to ensure <strong>the</strong>y arerespected. A study has been made <strong>on</strong> eliminating <strong>the</strong> maximum price, given that it is littleused. In fact, <strong>the</strong> market sets <strong>the</strong> prices and at present transport companies are obtaininggood pr<strong>of</strong>it margins.Regulati<strong>on</strong> and Government C<strong>on</strong>trol• To transport freight by road, companies need two c<strong>on</strong>secutive licences authorized by <strong>the</strong>Ministries <strong>of</strong> <strong>the</strong> Ec<strong>on</strong>omy and Transportati<strong>on</strong>:<str<strong>on</strong>g>The</str<strong>on</strong>g> Ministry <strong>of</strong> <strong>the</strong> Ec<strong>on</strong>omy provides <strong>the</strong> licence to operate as a private companyand c<strong>on</strong>trols <strong>the</strong> usual requirements <strong>of</strong> capital, staff, vehicles registered for companyactivities, etc.<str<strong>on</strong>g>The</str<strong>on</strong>g> Ministry <strong>of</strong> Transportati<strong>on</strong> authorizes <strong>the</strong> company to operate in <strong>the</strong> industry andgain access to <strong>the</strong> market. <str<strong>on</strong>g>The</str<strong>on</strong>g> process involves checking its capabilities, insurance,driving licences and experience <strong>of</strong> its employees, etc.• <str<strong>on</strong>g>The</str<strong>on</strong>g>re are no requirements to be met by self-employed individuals before <strong>the</strong>y startoperating. Buying a lorry, registering it and obtaining a driving licence is sufficient.• In terms <strong>of</strong> internati<strong>on</strong>al transport, Libya is not a signatory <strong>of</strong> <strong>the</strong> TIR C<strong>on</strong>venti<strong>on</strong>. Interms <strong>of</strong> internati<strong>on</strong>al transport not regulated by <strong>the</strong> TIR C<strong>on</strong>venti<strong>on</strong>, visas or permits arenot required for Tunisia or (recently) Italy. Libya had to close its border with Egypt due to<strong>the</strong> high volume <strong>of</strong> illegal immigrants entering Libya. <str<strong>on</strong>g>The</str<strong>on</strong>g>re is no major transport to orfrom Niger, Chad or Sudan.• <str<strong>on</strong>g>The</str<strong>on</strong>g>re is a law that regulates road freight transport and ano<strong>the</strong>r is being drawn up t<strong>of</strong>acilitate multimodal transport. <str<strong>on</strong>g>The</str<strong>on</strong>g> m<strong>on</strong>itoring body is <strong>the</strong> Ministry <strong>of</strong> Transportati<strong>on</strong>;specifically, <strong>the</strong> Directorate <strong>of</strong> Administrati<strong>on</strong> <strong>of</strong> Land Transport.Business Structure• <str<strong>on</strong>g>The</str<strong>on</strong>g>re are three kinds <strong>of</strong> haulier:Big companies, which have at least ten vehicles.Small companies, which have at least five vehicles.Self-employed individuals who have <strong>the</strong>ir own vehicle.<str<strong>on</strong>g>The</str<strong>on</strong>g> number <strong>of</strong> big and small companies is recorded by <strong>the</strong> Ministry <strong>of</strong> Transportati<strong>on</strong>,which also regulates <strong>the</strong>m. Depending <strong>on</strong> <strong>the</strong>ir category, companies can bid for publicc<strong>on</strong>tracts, and <strong>the</strong>y are also <strong>the</strong> <strong>on</strong>es who provide industrial, port and internati<strong>on</strong>altransport.<str<strong>on</strong>g>The</str<strong>on</strong>g> last category focuses chiefly <strong>on</strong> local distributi<strong>on</strong>.CETMO 45