Algeria is one of the strongest economies in Africa. In order to further grow, the country is interested in eliminating logistical constraints and developing rail transport for both freight and passengers. Ivan Nalich, Russia's Trade Representative in Algeria, spoke about the prospects of the market and its potential for domestic rolling stock manufacturers in an interview with ROLLINGSTOCK.
Ivan Sergeevich, what is the importance of rail transport in Algeria today?
Algeria is the largest African country, but despite this, the level of development of railway transport in it does not meet the level of logistical demand from the state. So, only about 5% of goods are transported by railways, the rest is road transport. At the moment, 4,560 km of railway tracks have been laid in the country, of which only 480 km have been electrified. At the same time, most of the roads are single–track. Two-track lines account for only 560 km.
Today, more than 300 locomotives, about 10,000 freight cars and more than 300 passenger cars operate on this network. They were supplied by American General Electric and EMD (Catterpillar), European Alstom, Stadler, CAF, etc.
Ivan Sergeevich, what is the importance of rail transport in Algeria today?
Algeria is the largest African country, but despite this, the level of development of railway transport in it does not meet the level of logistical demand from the state. So, only about 5% of goods are transported by railways, the rest is road transport. At the moment, 4,560 km of railway tracks have been laid in the country, of which only 480 km have been electrified. At the same time, most of the roads are single–track. Two-track lines account for only 560 km.
Today, more than 300 locomotives, about 10,000 freight cars and more than 300 passenger cars operate on this network. They were supplied by American General Electric and EMD (Catterpillar), European Alstom, Stadler, CAF, etc.
If we’re talking about urban railway transport, then in the capital of Algeria there is only one metro line with a length of about 18 km with 19 stations. It operates 28 trains supplied by the Spanish CAF. Currently, the subway is expanding, and the construction of new stations is being completed.
The tram network in Algeria is more extensive. Thus, it can be found in the capital, in the cities of Constantine, Oran, Sidi Bel Abbes, Ouargla, Setif and Mostaganem. The total amount of trams is more than 200 units, their supplier is Alstom.
What rolling stock purchase plans are you aware of?
We are closely following the entire development of railway transport in Algeria. Currently, the country, together with foreign partners, is implementing major infrastructure projects to expand the country's railway network. So, by 2035, it is planned to lay 5-7 thousand km of new railways that will connect the northern and southern regions of the country.
Obviously, such a development will entail the need to purchase new rolling stock. According to information we received from local railway industry experts, Algeria will need up to 7,000 freight cars and up to 150 locomotives for new projects. It is worth noting that during the implementation of projects for the extraction of iron ore and phosphates, the need may be determined later.
How is one to enter the Algerian market?
Algeria is considering various options for obtaining railway rolling stock – localization of production in the country together with a foreign partner and direct purchase from foreign manufacturers.
Purchases of rolling stock in Algeria are carried out by the state-owned SNTF within the framework of international tenders, which often requires the provision of a bank guarantee: its volume is indicated in the announcement of the tender. In turn, our trade mission regularly monitors information about such purchases and publishes it on its official website. Also, more detailed information about Algerian legislation, investment attraction policy, tax system and other issues can be found in the Telegram channel of the trade mission.
The tram network in Algeria is more extensive. Thus, it can be found in the capital, in the cities of Constantine, Oran, Sidi Bel Abbes, Ouargla, Setif and Mostaganem. The total amount of trams is more than 200 units, their supplier is Alstom.
What rolling stock purchase plans are you aware of?
We are closely following the entire development of railway transport in Algeria. Currently, the country, together with foreign partners, is implementing major infrastructure projects to expand the country's railway network. So, by 2035, it is planned to lay 5-7 thousand km of new railways that will connect the northern and southern regions of the country.
Obviously, such a development will entail the need to purchase new rolling stock. According to information we received from local railway industry experts, Algeria will need up to 7,000 freight cars and up to 150 locomotives for new projects. It is worth noting that during the implementation of projects for the extraction of iron ore and phosphates, the need may be determined later.
How is one to enter the Algerian market?
Algeria is considering various options for obtaining railway rolling stock – localization of production in the country together with a foreign partner and direct purchase from foreign manufacturers.
Purchases of rolling stock in Algeria are carried out by the state-owned SNTF within the framework of international tenders, which often requires the provision of a bank guarantee: its volume is indicated in the announcement of the tender. In turn, our trade mission regularly monitors information about such purchases and publishes it on its official website. Also, more detailed information about Algerian legislation, investment attraction policy, tax system and other issues can be found in the Telegram channel of the trade mission.
So far, the Algerian side has shown the greatest interest in cooperation with Russian manufacturers in terms of localizing the production of freight wagons for the needs of mining projects, as well as for the further export of wagons to African countries. This is due to the fact that current production will not be able to meet the demand of the railway industry in the coming years.
It is obvious that the deep localization of production in Algeria can give a noticeable competitive advantage over foreign manufacturers. According to Algerian legislation in the field of public procurement, any state-owned company is first required to announce a national tender for the purchase of products from local suppliers. In the absence of such, it is forced to announce an international competition.
How prepared is Algeria to cooperate with Russian companies in the current geopolitical conditions?
The country is positively inclined to cooperate with any manufacturers who can offer a high-quality and competitive product at an affordable price. We do not record discrimination of Russian manufacturers of various products on a country basis. So I can say with confidence that Algeria is ready to consider the supply of Russian rolling stock. However, in the current situation, in cooperation with Algeria, it is worth paying special attention to the methods of making payments and logistics.
The interview was conducted by Sergey Belov
Sergey Belov, Editor-in-chief of the ROLLINGSTOCK Agency
It is obvious that the deep localization of production in Algeria can give a noticeable competitive advantage over foreign manufacturers. According to Algerian legislation in the field of public procurement, any state-owned company is first required to announce a national tender for the purchase of products from local suppliers. In the absence of such, it is forced to announce an international competition.
How prepared is Algeria to cooperate with Russian companies in the current geopolitical conditions?
The country is positively inclined to cooperate with any manufacturers who can offer a high-quality and competitive product at an affordable price. We do not record discrimination of Russian manufacturers of various products on a country basis. So I can say with confidence that Algeria is ready to consider the supply of Russian rolling stock. However, in the current situation, in cooperation with Algeria, it is worth paying special attention to the methods of making payments and logistics.
The interview was conducted by Sergey Belov
Sergey Belov, Editor-in-chief of the ROLLINGSTOCK Agency
