Tuesday, December 16, 2014

Automotive and Energy Sectors Targeted by Freight Forwarding and Supply Chain Group

North African Country the Latest Region for Expansion
Shipping News Feature

ALGERIA – French headquartered freight forwarding and automotive supply chain logistics specialist Gefco, is expanding its North African network by establishing a base in Algeria which will manage containerised cargo for industrial clients from Algeria to countries in the Mediterranean and China, as well as managing the distribution of new vehicles to dealers for PSA Peugeot Citroën. Jean-Paul Ornano, Managing Director of Gefco Morocco and the Group’s Area Manager for North Africa, said:

“Gefco offers high-value-added logistics services in Algeria, in line with the Group’s international standards. North Africa is a promising and dynamic region in terms of international trade. The strength of our international network can help our clients develop locally and manage international flows to and from North Africa.”

The International Monetary Fund (IMF) estimates that Algeria will, as one of the most powerful economies in Africa, see its GDP grow 4% in 2015. With a population of over 38 million inhabitants, 45% of which is under 25, Gefco says that Algeria is a dynamic country rich in natural resources, particularly hydrocarbons, with the 15th or 17th largest oil reserves in the world, depending on where you source the information.

Additionally the country is well located for trade with Europe, the Middle-East, Latin America and Asia, being positioned at the crossroads of trade corridors whilst the country’s logistics sector is experiencing significant change driven by a large number of investment plans and infrastructure modernisation projects. Bertrand de Techtermann, Managing Director of the Algerian subsidiary, commented:

“With Gefco’s supply chain expertise, we now aim to contribute to the development of the Algerian logistics sector. We are backed by a network of reliable and efficient partners who meet the highest standards. We are entering the Algerian market with a dynamic team, ingrained with Gefco’s values regarding quality of service and operational excellence, to help enhance our customers’ performance.”

Gefco aims to support manufacturers in Algeria in two key expanding sectors, the automotive sector and the energy sector. The Algerian automotive sector has been growing rapidly with sales of new vehicles reaching 423,000 units in 2013, up 20.6% compared to 2012. Ranked number two on the African continent, the Algerian automotive market is one of the most promising worldwide, and with more than 65 years of experience in the automotive sector, Gefco aims to focus on the needs of international manufacturers in an increasingly globalised economy.

Although it has no official status French is a language spoken widely in governmental and business circles due to the colonial past and the other key area the French group will target, the energy sector (Oil & Gas), plays a key role in the local economy and represents 35% of economic growth. Algeria, the 10th largest country on earth, holds the world’s 9th largest reserves of natural gas and is currently the 2nd largest exporter of gas in the world with production expected to grow 8% per annum between 2014 and 2018.