MOVING FORWARD WITH PLANES AND TRAINS AND MARITIME

C O N F I D E N T I A L SECTION 01 OF 02 TUNIS 000192

SIPDIS

NOFORN
SIPDIS

NEA/MAG FOR HOPKINS AND HARRIS, EB/CBA (WINSTEAD)
STATE PASS USTR (BELL)
USDOC FOR ITA/MAC/ONE (NATE MASON),ADVOCACY CTR (JAMES)
CASABLANCA FOR (FCS ORTIZ)
LONDON AND PARIS FOR NEA WATCHERS

E.O. 12958: DECL: 02/02/2017
TAGS: ETRD EAIR ELTN EWWT ECON TS
SUBJECT: MOVING FORWARD WITH PLANES AND TRAINS AND MARITIME
PORTS

REF: A. TUNIS 132


B. TUNIS 119

C. TUNIS 105

Classified By: Ambassador Robert F. Godec for reasons 1.4 (b) and (d)

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Summary
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1. (C/NF) During Ambassador's January 29 courtesy call on
Abderrahim Zouari, Minister of Transport, discussion ranged
from modernization of Tunisia's transportation infrastructure
to the Minister's desire for a stronger relationship with US
counterparts. The Minister expressed GOT interest in Open
Skies and maritime transport agreements with the United
States. He would also like to see more US business
involvement in Tunisia's upcoming transportation projects to
create greater competition. The Minister suggested that
Boeing follow Airbus' example and manufacture aircraft parts
in Tunisia, hinting that this would enhance Boeing's chances
of winning future GOT aircraft purchase tenders. Ambassador
said that transportation was an important and strategic
sector and that GOT and USG should explore ways to cooperate
and strengthen the relationship. Ambassador raised the
possibility of US trade missions and other visits to Tunisia
in order to encourage greater cooperation. End Summary.

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Aircraft
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2. (C/NF) Minister Zouari opened the meeting with a
discussion of the planned changes within the air transport
sector in Tunisia. According to the Minister, there is an
aging fleet of approximately 60 planes among the various
Tunisian airline companies. TunisAir has a five year plan
(between 2007-2012) to replace 10 to 12 aircraft with a
longer term goal of replacing its entire fleet (29 planes).
Zouari also mentioned the pending merger of Karthago and
Nouvel Air, private airline companies that operate charter
flights between Tunisia and Europe. These two airlines also
have an aging aircraft fleet, (Karthago has six Boeing
737-300 aircraft and Nouvel Air has 12 Airbus 320-200 and two
Airbus 321-100). Ambassador asked that new aircraft
procurements be awarded via a fair and transparent process
and that Boeing receive full consideration. The Minister
said that Airbus currently manufactures aircraft parts in
Tunisia and indicated that Boeing should also consider
manufacturing aircraft parts in Tunisia. The implication was
that it would be easier for Boeing to win future aircraft
procurement contracts if it were manufacturing aircraft parts
in Tunisia. Zouari stated that he is interested in
discussing further cooperation between Boeing and GOT.
(Note: Ambassador subsequently met with Mr. Derek Marble,
Boeing's Technical Service Representative in Tunis, on
February 2, and relayed this information. End Note).

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Open Skies
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3. (C/NF) The Minister then expressed his desire for an Open
Skies Accord with the United States. He said that GOT had
negotiated accords with EU, Arab, and African countries but
that it did not have an accord with the United States. GOT's
hope is to commence direct flights between Tunisia and the
United States, perhaps starting with a Tunis-New York-Tunis
route. He mentioned that the current Tunis-United States
flight option is a Delta Airlines codeshare agreement with
TunisAir and Air France to provide service via Paris.
Ambassador asked if there had been an FAA visit to Tunisia
and if TunisAir was certified to fly to the United States.
The Minister said that the FAA has not visited Tunisia but he
would welcome such a visit and further collaboration in this
area.

TUNIS 00000192 002 OF 002



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Upcoming Projects
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4. (C/NF) Zouari said he hoped that more US companies will
become involved in several planned BOT (build, operate,
transfer) transportation sector projects. These include a
deep water port at Enfidha, a container terminal at Rades, an
upgraded cruise ship terminal at La Goulette, and an
expansion of the Bizerte port. The Minister said that the
Enfidha international airport tender is in the pre-selection
stage and a consortium that includes a US company (NFI) is
apparently included on the short list. There are also
logistics, tourist, and industrial zones planned around these
projects for which the Minister would like to see increased
US business interest. Besides aviation and maritime
projects, Zouari said that the GOT plans to overhaul and
further develop its railroad infrastructure, including a
rapid rail network around the Greater Tunis area, planned for
completion by 2021. Zouari said that this 85km rail project
is projected to cost approximately $3 billion with $700
million earmarked for the 2007-2011 time frame Traffic
congestion problems facing Tunis and Sfax is another area
that the Minister said will be addressed in the next five
years. He indicated that some type of light rail/metro
system for Sfax is in the planning stage. The Minister said
that the GOT is also in the process of expanding bus routes
and modernizing its bus fleet a to cover the greater Tunis
area.

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Bilateral Cooperation
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5. (C/NF) The meeting concluded with the Ambassador
emphasizing that the transportation sector is important both
strategically and from a security perspective and discussing
ways to develop a stronger bilateral relationship in these
matters. The Minister suggested that more US
businessmen/companies visit Tunisia to "develop the
relationship." He indicated that Tunisia had good relations
with its Libyan and Algerian counterparts in this sector but
it had yet to create such relations with US counterparts. He
would like to see more US content in transportation sector
projects. Zouari said that more US company involvement would
not only improve competition but would also give Tunisia more
choices beyond just EU partners.


6. (C) Ambassador raised the possibility of a US trade
mission to Tunisia and other visits, adding he would seek to
encourage them. Ambassador indicated that we could seek to
include on any such delegations representatives from the
transportation sector (i.e. maritime and aviation
delegations). Ambassador also requested that the Ministry
notify the US Embassy Commercial Section of any upcoming
tenders/projects.

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Comment
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6. (C/NF) Ambassador's courtesy calls on ministers involved
in infrastructure building and trade (reftels) suggest that
the GOT is looking for a stronger business relationship with
the United States and increased US investment in Tunisia.
The primary motive may be to generate more competition,
options, and better financing prospects for major
infrastructure projects. However, the GOT hopes for stronger
relations may also help foster the necessary reforms to
attract greater US business interest. The GOT is talking the
talk, but it is still unclear if they are willing to walk
the walk. End Comment.
GODEC