French shipping giant CMA CGM is in advanced talks to acquire a minority stake in Algeria’s state-owned port operator Entreprise Portuaire d’Alger (EPAL), according to sources close to the negotiations cited by Reuters this week. The move follows a memorandum of understanding signed in May 2025 between CMA CGM and Algeria’s Ministry of Transport, which outlined potential investment in port infrastructure, logistics hubs, and digitalisation projects.
The discussions focus on the Port of Algiers, where EPAL manages container terminals, bulk cargo, and passenger traffic. CMA CGM, the world’s third-largest container shipping company, operates a weekly service linking Algiers to Marseille and Valencia, but its current footprint in Algeria remains limited to commercial agreements rather than physical assets. The proposed deal would mark the first foreign direct investment in Algerian port infrastructure since the 2020 privatisation of the Port of Djen Djen’s container terminal to DP World.
Port capacity crunch meets trade growth
CMA CGM’s potential investment could unlock upgrades to Algiers’ berths, cranes, and customs clearance systems. The company has pledged to introduce its “Port Synergy” digital platform, which uses AI to optimise cargo flows, a tool already deployed in Marseille and Singapore. For Algerian exporters—particularly in agriculture and manufacturing—faster turnaround times could reduce logistics costs, which currently account for 18% of the final price of goods, compared to 12% in Tunisia, per World Bank data.
Diaspora dollars and supply chain shifts
Entrepreneurs in the diaspora, such as Paris-based logistics startup founder Karim Benali, see potential in Algeria’s underdeveloped cold chain infrastructure. “A modernised Port of Algiers could halve the time it takes to export Algerian dates or seafood to Europe,” Benali told Jeune Afrique in June 2025. His company, FrigoLog, is already in talks with Algerian customs to pilot a blockchain-based tracking system for perishable goods.
Local players brace for competition
“The Algerian logistics sector is fragmented, with over 1,200 small operators handling last-mile delivery,” said Amina Khelifi, a consultant at Algiers-based firm Stratégies & Marchés. “CMA CGM’s entry could force consolidation, but it also risks sidelining domestic players unless the government enforces local content rules.” The Ministry of Transport has not yet clarified whether the deal will include requirements for Algerian subcontractors or joint ventures.
Regulatory hurdles and geopolitical risks
Meanwhile, Morocco’s Tanger Med port, which handled 8.6 million TEUs in 2024, remains a formidable rival. Algerian officials have expressed frustration over Morocco’s ability to attract $1.2 billion in port investments since 2020, including from Maersk and MSC. “Algeria can’t afford to lose more trade to Tanger Med,” said a senior ANP official, speaking on condition of anonymity. “CMA CGM’s investment is a test of whether we can compete.”
What’s next for the deal
The company’s CEO, Rodolphe Saadé, has framed the deal as part of a broader Mediterranean strategy. “Algeria is a gateway to Africa, and we want to be part of its economic transformation,” Saadé said in a recent interview with Les Échos. His comments echo Algeria’s ambitions to become a regional hub, leveraging its 1,200 km coastline and proximity to Europe.
Key takeaway for entrepreneurs
CMA CGM’s potential port investment signals Algeria’s growing appeal as a trade corridor, but local logistics firms must prepare for competition. Entrepreneurs in agriculture, manufacturing, and e-commerce should monitor port upgrades, as faster customs clearance could reduce export costs by up to 20%. Diaspora investors with expertise in cold chain or digital logistics may find opportunities in joint ventures with Algerian partners, particularly if the government enforces local content rules.
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