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 2010Strictly speaking, one cannot speak of informal transport in Libya because, in thecase of self-employed individuals, there is no licensing or control of activities by theMinistry of Transportation.• <strong>The</strong> market for freight transport by road is growing significantly and there is a need fornew road infrastructure and equipment to cope with the increase in traffic.• In terms of prices, the Ministry of the Economy sets a maximum but not a minimum.Furthermore, these prices are not respected and there are no controls to ensure they arerespected. A study has been made on eliminating the maximum price, given that it is littleused. In fact, the market sets the prices and at present transport companies are obtaininggood profit margins.Regulation and Government Control• To transport freight by road, companies need two consecutive licences authorized by theMinistries of the Economy and Transportation:<strong>The</strong> Ministry of the Economy provides the licence to operate as a private companyand controls the usual requirements of capital, staff, vehicles registered for companyactivities, etc.<strong>The</strong> Ministry of Transportation authorizes the company to operate in the industry andgain access to the market. <strong>The</strong> process involves checking its capabilities, insurance,driving licences and experience of its employees, etc.• <strong>The</strong>re are no requirements to be met by self-employed individuals before they startoperating. Buying a lorry, registering it and obtaining a driving licence is sufficient.• In terms of international transport, Libya is not a signatory of the TIR Convention. Interms of international transport not regulated by the TIR Convention, visas or permits arenot required for Tunisia or (recently) Italy. Libya had to close its border with Egypt due tothe high volume of illegal immigrants entering Libya. <strong>The</strong>re is no major transport to orfrom Niger, Chad or Sudan.• <strong>The</strong>re is a law that regulates road freight transport and another is being drawn up tofacilitate multimodal transport. <strong>The</strong> monitoring body is the Ministry of Transportation;specifically, the Directorate of Administration of Land Transport.Business Structure• <strong>The</strong>re are three kinds of haulier:Big companies, which have at least ten vehicles.Small companies, which have at least five vehicles.Self-employed individuals who have their own vehicle.<strong>The</strong> number of big and small companies is recorded by the Ministry of Transportation,which also regulates them. Depending on their category, companies can bid for publiccontracts, and they are also the ones who provide industrial, port and internationaltransport.<strong>The</strong> last category focuses chiefly on local distribution.CETMO 45