Algeria has officially shelved the El Hamdania deep-water port project, a $3.3 billion initiative initially planned in partnership with China. The decision, confirmed by the Algerian Port Authority, attributes the cancellation to technical and economic challenges, including the project’s high cost and the requirement for Chinese companies to finance and manage its construction. The project was part of China’s Belt and Road Initiative and had faced delays since its inception in 2016.
In place of the El Hamdania project, Algeria is focusing on modernizing existing port infrastructure to accommodate larger vessels. This includes dredging projects to deepen harbor depths from 12 meters to 20 meters and the construction of new docks extending into the sea. These upgrades aim to position Algeria as a key logistics hub between Europe and Africa.
The cancellation of the El Hamdania project and the shift towards modernization reflect Algeria’s strategic move to strengthen economic ties with France. This is evident in the recent meeting between President Abdelmadjid Tebboune and Rodolphe Saadé, CEO of French shipping giant CMA CGM, discussing potential investments in Algeria’s port sector. The French company is already present in several Algerian ports and is considering further expansion.
This pivot in Algeria’s port development strategy indicates a desire to balance relations with China and France, aiming to enhance domestic infrastructure while navigating complex international partnerships.
