Algeria's Ambitious Railway Expansion Plan
The National Railway Transport Company of Algeria has embarked on a significant initiative to enhance its railway infrastructure, allocating $3 billion for the acquisition of various railway transport equipment. This includes high-capacity locomotives, passenger cars, self-propelled trains, and freight cars. Sofiane Aibesh, the company's Director of Management and Shareholding Control, confirmed that the funding will be distributed in stages, reflecting the government's commitment to modernizing the railway system.
In addition to new equipment, the company is also investing over $300 million to rehabilitate and maintain existing facilities and railway lines. The National Agency for Studies and Monitoring of Railway Investments (ANSRIF) reported that over 700 kilometers of railway were put into service in 2023, contributing to a total network length of 4,722 kilometers. This figure is expected to rise to 6,500 kilometers upon completion of the current expansion program, with a long-term goal of reaching 15,000 kilometers by 2030, making it the longest railway network in Africa and the Arab world.
Strategic Projects and Economic Impact
Algerian President Abdelmadjid Tebboune recently laid the foundation for a new 950-kilometer railway line aimed at connecting to the Gara Djebilet mine, with an estimated cost of $5.2 billion. This project is projected to be completed within 30 months and is expected to generate significant economic benefits, including an annual revenue of $10 to $14 billion starting in 2026/2027 from iron ore transportation.
The former Minister of Transport, Amar Tou, highlighted that the railway network has expanded from approximately 1,800 kilometers in 2008 to 5,000 kilometers today, with ongoing projects particularly focused on desert regions. The Bechar-Tindouf line is seen as a strategic investment that will enhance the extraction of iron ore and reduce Algeria's dependence on imports, potentially saving $3 billion annually and bolstering the country's hard currency reserves.
Enhancing Connectivity and Supporting Local Development
The railway expansion is not only about transporting minerals; it also aims to improve the movement of agricultural products from the southern regions to northern markets. The line connecting the north to the south will facilitate the transport of surplus agricultural goods, including vegetables and livestock, thereby enhancing local economies.
Moreover, the railway network will connect Algerian ports with African countries south of the Sahara, promoting trade and economic integration. The former minister noted that the new lines will also support various industries, including oil and agriculture, by providing efficient transportation solutions.
As Algeria continues to invest in its railway infrastructure, the government faces the challenge of effectively managing financial, logistical, and social aspects to ensure the success of these ambitious projects.
