Recently, China Harbour Engineering Company (CHEC), a Chinese state-owned engineering contractor, and Algeria's state-owned marine engineering group GTM signed a port development cooperation agreement. The two parties will establish a joint venture to uniformly undertake port dredging and related engineering projects throughout Algeria. The signing ceremony was held in Algiers and witnessed by the Algerian Ministry of Public Works and Infrastructure. This move continues the recent surge in Sino-Algerian infrastructure cooperation, further solidifying the core position of Chinese companies in North African port infrastructure.

Joint Venture Model Implemented

The two parties agreed to establish an Algerian-Chinese joint venture responsible for port dredging operations and related engineering projects nationwide. The project includes the restoration and upgrading of wharves, port basins, channels, and port entrance water depth standards, aiming to optimize port facility utilization, improve navigation efficiency, and enhance overall economic efficiency. The official investment amount and construction period have not yet been disclosed. The cooperation model will provide long-term services for the operation and maintenance of port infrastructure throughout Algeria, realizing a transformation from single-project contracting to localized long-term operation.

Driven by Mineral Demand

Algeria boasts abundant mineral resources, among which the Galajebilet iron ore mine is a world-class iron ore reserve base with total reserves of nearly 3.5 billion tons and recoverable reserves of approximately 1.7 billion tons. Locally, a $10 billion investment was planned for the mine's development, with production commencing in mid-2022. To meet the demand for mineral exports, China Railway Construction Corporation (CRCC) undertook the construction of over 1,000 kilometers of railway trunk lines in 2023, connecting the mine to the Bechar export terminal, which officially went into operation this February. With the expansion of mineral production capacity and cross-border logistics, port dredging and waterway upgrades have become crucial necessities for ensuring smooth resource export channels. Keywords: Port dredging and upgrades, mineral export channels, North African infrastructure layout

Deepening Roots in the North African Market

In the past three years, Chinese enterprises have continuously deepened their presence in Algeria's infrastructure, energy, and manufacturing markets, implementing several benchmark projects. This time, China Harbour Engineering Company (CHEC) entered the market through a joint venture model, relying on its mature port dredging and operation and maintenance technology to undertake the upgrading of national-level ports. This will not only improve its own business layout in North Africa, but also open up key logistics nodes for Algeria's mineral exports and international trade, and deepen pragmatic two-way production capacity cooperation between China and Algeria.Editor/Sunyaxin