US embassy cable - 05ALGIERS1571

UNCLAS SECTION 01 OF 02 ALGIERS 001571 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON, ELAB, EWWT, PGOV, AG, Economic Reform 
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