Maritime Transport Services Concession in Algeria: A Privatisation Mechanism or a Restrictive Tool?

Abstract

The Algerian legislator approaches the maritime transport sector with considerable sensitivity due to its strategic nature. However, rather than encouraging investment to enable Algeria to build a fleet for its foreign trade, the legislator’s awareness of this sector’s importance has resulted in a cautious approach to opening it up to private entities. This has resulted in the sector remaining public property, thereby limiting private investment opportunities to public service delegation contracts. Of these, the Algerian legislator has chosen the concession contract for the privatisation of the maritime transport sector, widely considered to be the most rigid, particularly given that the regulations governing the concession of maritime transport services are far stricter than those in other sectors. These regulations reinforce the administration’s dominance over the contract, at both the conclusion and execution stages. Furthermore, the conditions for obtaining a concession for maritime transport services are onerous for the average investor. In terms of expertise, the regulations indirectly restrict the scope of maritime transport subject to concession to regular line transport, which requires significant financial resources and expertise. Consequently, it can be inferred that the caution exercised by the legislator in dealing with this sector has had a counterproductive effect.