Identifier
Created
Classification
Origin
05ALGIERS1571
2005-07-27 16:10:00
UNCLASSIFIED
Embassy Algiers
Cable title:  

NEW TRAFFIC PLAN IN ALGIERS CAUSES DISCONTENT,

Tags:  ECON ELAB EWWT PGOV AG 
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UNCLAS SECTION 01 OF 02 ALGIERS 001571 

SIPDIS

E.O. 12958: N/A
TAGS: ECON ELAB EWWT PGOV AG
SUBJECT: NEW TRAFFIC PLAN IN ALGIERS CAUSES DISCONTENT,
STRIKES

SUMMARY
-------

UNCLAS SECTION 01 OF 02 ALGIERS 001571

SIPDIS

E.O. 12958: N/A
TAGS: ECON ELAB EWWT PGOV AG
SUBJECT: NEW TRAFFIC PLAN IN ALGIERS CAUSES DISCONTENT,
STRIKES

SUMMARY
--------------


1. The Ministry of Transportation began enforcing a new
traffic plan June 1 in Algiers to reduce daytime traffic
congestion throughout the capital. The new measure
restricts the movement of trucks of more than 2.5 tons
inside the capital to nighttime hours only. Truck drivers,
dock workers, and transportation workers went on strike June
2 at the Port of Algiers to protest the new plan, leading to
enormous delays in deliveries and the unloading of
containers until a compromise was finally reached between
unions and the wilaya of Algiers. Some business owners said
that the strike, which ended June 12, had adversely affected
50% of their activities. Gas stations continue to face
supply problems because the new restrictions also apply to
fuel tankers, a situation exacerbated by increasing demand
for diesel fuel. Algerian officials insist the new
regulations will remain in effect despite widespread
dissatisfaction. END SUMMARY

INTRODUCING A NEW
TRAFFIC PLAN FOR ALGIERS
--------------


2. The Ministry of Transportation and Algiers Wilaya
(province) began enforcing June 1 a new traffic plan for the
capital to reduce daytime traffic congestion, which has
reached critical levels in recent months in some areas of
Algiers due to increasing activity at the Port of Algiers,
an increasing number of cars on the roads, and numerous
construction projects throughout the city. The decision
incited strikes and protests by the Port of Algiers
truckers' union from June 1 to June 12 and caused delays in
deliveries around the country. The new plan restricted the
movement of trucks of more than 2.5 tons to nighttime hours
only (8:00 p.m. to 6:00 a.m.) in 43 communities of Algiers.
The new rules did not apply to deliveries of basic
commodities. The measure was targeted to alleviate the
increasing traffic problems exacerbated by trucks
originating from the Port of Algiers, Algeria's largest
container port, which manages two-thirds of national
container traffic. According to Wilaya Transportation
Directorate official Yahia Bendjoudi, about 25,000 trucks
and tractor trailers drive every day in the capital, in
addition to 700,000 cars, of which 80,000 entered onto the

roads for the first time in 2004 alone, thanks largely to
greater auto credit availability for consumers. The new
plan was designed to ease the circulation of passenger
vehicles and ensure better traffic flow throughout the city.

WORKERS' PROTESTS HAVE AN IMPACT
--------------


3. Following the implementation of the new plan, private and
public delivery companies protested its implementation for
ten days by declaring their refusal to work at night for
"security reasons," effectively blocking about 10,000
containers at the Port of Algiers and causing significant
losses for importers. The dock workers' union secretary
general said that this "thoughtless" decision caused
economic losses estimated at $1.34 million per day,
criticized authorities for not considering the consequences
of the decision, and noted that the port, already operating
24 hours a day, could not meet demand of international
shippers for lack of port space.


4. Ship unloading ground to a standstill during the strikes,
leaving ships stranded at the port for days and unable to
discharge cargo. Construction on major infrastructure
projects slowed. Determined to hold firm, the Wilaya
refused permission for the Algerian-German group building
the Algiers metro to make daytime deliveries despite the
potential for delays. Algiers Wilaya Chief of Staff told
post that no waiver would be granted and that the decision
on the new regulation was firm. According to a Ministry of
Transportation official, however, a waiver would have been
granted for the Algiers metro project.

AGREEMENT REACHED TO END THE STRIKES
--------------


5. The National Organization of Algerian Transporters held
negotiations June 9 with the Algiers Wilaya Chief of Staff.
After a long debate, the union agreed to end the strike and
resume activities at the port on June 12 provided that the
Wilaya make a firm commitment to address the union's
complaints. The parties established a working commission to
identify the problems facing transporters that the
authorities said they would resolve.


6. During a June 11 press conference, employers'
confederations, unions, and economists assessed Algeria's
economic situation. Employers expressed their discontent
with the economic consequences of the new plan on their
activities; delivery delays affected up to 50% of activities
in some sectors.


7. The Port of Algiers remains the busiest container port in
Algeria, with between 800 and 1,000 containers unloaded at
the port daily. In 2004, more than 2,800 ships berthed at
the Port of Algiers, representing a 2.78% increase over

2003. Total goods traffic was up by 8.81%, representing
about 10 million tons, due to increases in agricultural and
other imports. The port has faced numerous challenges in
past months, including the implementation of a new port
safety plan after the drowning inside port confines of more
than a dozen merchant sailors in a November 2004 storm, and
the blocking of the port's long-studied expansion plans in
favor of constructing the adjacent Hamma desalination plant.

FUEL SUPPLIES AFFECTED
--------------


8. Since the strike ended, the Forum of Business Leaders
(FCE) addressed a letter to Prime Minister Ouyahia
requesting reconsideration of the decision. Moreover, gas
stations began to face supply problems because the new
traffic plan imposed restrictions on daytime deliveries in
18 communes of the wilaya. As a result, NAFTAL, the
distribution agent, which used to employ various delivery
rotations during the day, cannot properly ensure fuel
delivery because of limited resources, the widespread
closure of gas stations outside of daylight hours, and
increasing demand for diesel fuel. Algiers Wilaya Chief of
Staff publicly denied the rumor that the plan would be
cancelled in September, adding that, on the contrary, more
(unspecified) restrictions will be imposed. Any September
decision might be timed to coincide with the start of
Ramadan, when people work fewer hours and traffic increases.

SIEVERS