Crisis with France Hinders Port Infrastructure Development in Algeria

A report by the Spanish newspaper Informacion Logistica has revealed that the ongoing political and diplomatic crisis between Algeria and France has significantly impacted business relations between the two countries, with Algeria's port infrastructure among the sectors adversely affected.

According to the report, one of the major consequences of the escalating tensions is the suspension of a project by the French shipping giant CMA CGM, which was on the verge of securing an operating concession at the Port of Oran—one of Algeria’s most strategic maritime hubs.

The same source indicated that CMA Terminals, a subsidiary of CMA CGM, had been engaged in negotiations for nearly a year to obtain the rights to manage operations at the port. However, the latest deterioration in Algerian-French relations has brought the discussions, which were nearing completion, to an abrupt halt.

The report further noted that CMA CGM CEO Rodolphe Saadé was scheduled to make an official visit to Algeria to move forward with signing the agreement. The visit was also expected to include a meeting with Algerian President Abdelmadjid Tebboune, which was meant to culminate in a formal agreement.

However, according to the Spanish newspaper, the visit was postponed due to the worsening bilateral relations. It added that the political tensions are casting a shadow over investment projects in Algeria's port sector, particularly as this initiative “could have contributed to the development of the country’s maritime infrastructure,” the report stated.

The Algeria-France dispute has recently reached an unprecedented peak. Paris recalled its ambassador from Algiers for consultations and ordered the expulsion of 12 Algerian consular staff from French territory. This move came in response to an earlier decision by Algiers to expel 12 French embassy employees.

Algeria's escalation was reportedly prompted by the arrest of an Algerian diplomat by French authorities over suspicions of involvement in the kidnapping of opposition activist Amir DZ. The arrest occurred despite earlier signs of rapprochement between the two nations following a visit to Algiers by French Foreign Minister Jean-Manuel Barrot, who met with President Tebboune in an effort to resolve tensions.

The roots of the dispute trace back to the summer of last year when France officially expressed its support for Morocco’s sovereignty over Western Sahara. In response, Algeria recalled its ambassador to Paris and downgraded diplomatic ties. The rift deepened further with the formation of a new French government that includes several right-wing ministers known for their tough stances on Algeria.

As of now, bilateral relations remain in a state of deep crisis, with no clear resolution in sight—particularly as Algeria continues to reject cooperation with France on key issues of concern to Paris, such as migration.

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