The Potential of Railway Freight Transport in the Maghreb

Status of intra-Maghreb trade

The development of transport and logistics infrastructure is linked to international and regional trade in goods, and, despite the goodwill shown during the creation of the UMA, the level of intra-Maghreb trade remains very low and marginal compared to the total trade of Maghreb countries. Several studies have concluded that this low level of trade is due to several considerations, but there is, however, real potential that could be harnessed.

In this context, the regional study on trade facilitation and infrastructure for Maghreb countries (World Bank-2012) confirmed that the costs of intra-Maghreb trade are high compared to bilateral costs between the Maghreb and the European Union. The study on the cost of non-Maghreb (FTDES-FMAS) also notes the low level of intra-Maghreb trade, with almost no progression. The exchange of goods represents only 3.6% of the total, and the region’s contribution to GDP is weak, with only 2.05% in 2015.

The report on regional integration in the Maghreb-Challenges and Opportunities for the private sector (AfDB, BMICE) highlights that intra-Maghreb trade performance is weak, accounting for only 2.7% of the total in 2017, compared to 3.1% in 2016 and an average of 3.2% for the period 2012-2017. According to this report, the delay in the integration process costs each country 1.5% to 2% of the growth rate and a loss of 200,000 to 300,000 additional jobs per year across the region.

The low level of trade integration is due to regulatory and logistical obstacles. It is mainly related to high degrees of trade protection practiced in the region and restrictive trade rules with tariff and non-tariff barriers. Additionally, the multiplicity of bilateral and regional trade agreements concluded by the Maghreb countries has not yielded the expected results due to a lack of willingness to implement these agreements. The complementarity of trade has not been harnessed under a common policy.

These constraints are compounded by customs clearance and border crossing procedures, low logistics performance, and the quality of border infrastructure and road and rail transport services, with missing sections. It is also noteworthy that direct maritime connectivity between Maghreb countries is very low or non-existent, and maritime exchanges are carried out through European ports.

Rail transport networks in Maghreb countries

Available data, including those from the “AfDB-ITALFER” study, show that the railway network has slightly evolved and is approximately 9,547 km long, of which only 8,523 km are operational. The Moroccan network consists of 2,109 km, of which 1,284 km are electrified. The Algerian network consists of 4,573 km, of which 3,854 km are operational. The Tunisian network consists of 2,165 km, of which 1,860 km are operational. Mauritania operates a single railway line of about 700 km in length, connecting the iron ore mine of Kediet Ijill and the mineral port of Nouadhibou. Libya started construction on its first railway lines in 2001. The first line should connect the country to the borders with Tunisia to the west and the borders of Egypt to the east, linking to the trans-Maghreb network. However, work stopped in 2011, and there is no data on the completion of the work and the commissioning of the line.

The railway connection constitutes a fundamental component of the Maghreb network, the trans-Mediterranean transport network (TMN-T), and the GTMO5+5 network. The willingness of Maghreb countries to develop intra-Maghreb rail transport has been concretized through various cooperation frameworks. Firstly, at the UMA level, with the adoption of an ambitious program aligned with the realization of the UMA’s founding treaty objectives, aiming for regional integration and facilitating the movement of goods, services, and people. The Maghreb high-speed rail line and the Maghreb highway are major projects agreed upon since the 1990s.

At the Mediterranean level, the identification of a trans-Mediterranean transport network, including a railway component, has always been a priority project for ministerial conferences of the Union for the Mediterranean (UpM), particularly in the various regional transport action plans (RTAPs), including the current RTAP 2021-2027. The work on identifying a mutually accepted TMN-T by the countries includes the railway component. The same interest is granted in the framework of cooperation at the level of the western Mediterranean, the GTMO5+5.

It is also noteworthy that the studies conducted by CETMO have confirmed the importance of focusing on the intra-Maghreb transport network, including railway transportation.

Railway Sector Development Programs and Results of Conducted Studies

Maghreb countries have always sought to prioritize the railway sector, although the realization of improvement and expansion programs for railway networks falls short of objectives and stated intentions, owing to various considerations. This intention and special interest in the railway sector have been particularly evident in the last two decades.

In this context, data from available studies show that Morocco has made significant advances in railway transport, and the Moroccan railway network is considered the most modern in Africa. Notable projects that have been completed, ongoing, or planned include the construction of the Casablanca-Tangier high-speed line, station transformation projects, railway lines between Khouiribga and Beni Mallel, Rabat and Meknes, Marrakech and Agadir, the Fes-Oujda high-speed line, the Casablanca-Marrakech high-speed line, and fiber optic projects, among others (AfDB Study, ITALFER).

Algeria places particular importance on railway transport through significant projects outlined in its railway sector master plan. The program includes 2890 km currently under construction, with 574 km dedicated to track renewal works. Of note is the North Ring project, connecting with the Moroccan borders on one side and the Tunisian borders on the other, spanning a length of 1220 km. In this context, the Annaba El Tarf-El Kalla line and the high-speed line were identified in 2013 (AfDB Study, ITALFER).

Over the past 15 years, Tunisia has undertaken several actions related to track consolidation and renewal, strengthening of structures and axle load capacity, rectification of constraining sections, and protection of corridors, among others. Key projects completed or planned include upgrading the Tunis-Gabes line and track renewal on the Tunis-Alger line. The major projects and works undertaken or planned include the Gabes-Medenine link, the doubling the Moknine-Mahdia track, the restoration of the Mateur-Tabarka line, electrification, and the rehabilitation of the Tunis-Kasserine line, the restoration of the Sousse-Kairouan connection and its extension to Kasserine, via Sidi Bouzid, and more. (AfDB Study, ITALFER).

In general, progress in developing and upgrading road networks and the railway connection is slow low due to certain considerations related to priorities, public finances, project planning and financing, and the low level of trade that does not warrant heavy investments in transportation and logistics infrastructure.

The most recent study is focused on the “Feasibility of Rehabilitation and Modernization of the Trans-Maghreb Railway Line,” financed by the AfDB for the Arab Maghreb Union (UMA) and conducted in 2018 by ITALFER in association with COMETE International and MEDEVCO. The objective of this study is to re-establish a direct railway link between Casablanca, Algiers, and Tunis, and to reduce the total travel time in two stages: from 48 hours to 30 hours and then to 25 hours. The third stage involves the development of a Maghreb High-Speed Train (TGVM) and the extension of the high-speed railway axis to Mauritania and Libya represents the final stage.

Six scenarios were studied, three without TGVM and three with TGVM. The evaluation of these scenarios took into account all technical, economic, financial, environmental, institutional, and social aspects.

The study concluded that the only alternative to reduce the travel time to 30 hours by 2025 with reduced investment is to use the existing network, specifically the modernization of the existing Fez-Oujda-Akid Abbas line and the modernization of the existing Souk Ahras-Ghardimaou-Beja line.

For the second stage, aiming to reduce the travel time to 25 hours and employing new rolling stock, the most suitable route concluded by the study is Scenario 2 (which involves modernizing the existing Fez-Oujda-Akid Abbas line, constructing a new railway line between Annaba Sud, El Tarf, and Jendouba, and modernizing the existing Jendouba-Beja line). This same route is also recommended for the possible development of the Maghreb high-speed line between Casablanca, Algiers and Tunis, i.e., Scenario 5 of the study.

Both for improving the existing network and for the high-speed line, the selected scenarios (Scenarios 2 and 5, respectively) require the construction of new sections. These sections concern the connection of the Algerian network to the Tunisian network with a new route, covering a length of 130 km from Annaba Sud to AlTarf-Jendouba.

In conclusion, the consulting firm considers that, given the schedule of interventions for the first two stages, achieving the objectives of these stages would entail unnecessary costs that could be avoided by prioritizing the long term and establishing a progressive implementation plan, based on funding availability and focusing on the most profitable sections of Scenario 2.

Given the proposal by the consulting firm and considering that the period for the first stage of the study (2025) is nearly complete, and in view of the constraints and obstacles to commercial integration and the development of the railway corridor, it seems more appropriate to present the study results with the aim of retaining an option acceptable to all countries involved. The potential for freight traffic between Tunisia and Libya should be taken into consideration.

Conclusions

Conclusion 1: Real Potential for Commercial Integration and Development of Freight Railway Transport: There is real potential for intra-Maghreb integration and opportunities to enhance trade. Land transportation, especially railway transport, also represents potential for facilitating exchanges. However, realizing these potentials is primarily conditioned by a willingness to overcome observed constraints and obstacles through a well-defined action plan.

Conclusion 2: Constraints on Commercial Exchanges and Regional Integration: The low level of commercial integration and marginal share of exchanges compared to total Maghreb trade is mainly due to regulatory and logistical constraints based on high levels of commercial protection, restrictive rules, tariff and non-tariff barriers. This weak integration is also attributed to customs clearance procedures, border crossing delays, poor logistical performance, inadequate infrastructure at borders, and missing segments in road and railway transportation infrastructures and services.

Conclusion 3: Low Progress in the implementation of Railway Transport Development Programs: The railway connection has not received the necessary investments for maintenance and extension, primarily due to considerations related to priorities of public finances on project planning, and financing. Additionally, the low level of trade and commercial integration does not justify the profitability and feasibility of investments in projects. However, there has been renewed interest in the sector in recent years, with significant projects for national railway transport.

Furthermore, the alternative proposed by the ITALFER study, which involves maintaining and rehabilitating certain sections and constructing new 130 km sections on both the Tunisian and Algerian sides, would require significant funding and can only be realized through mutual validation and acceptance by both countries. The potential for traffic between Tunisia and Libya via Sousse, Sfax, and Gabes should also be considered.

Conclusion 4: Financing: Despite various initiatives at the Union for the Mediterranean level, particularly the Civitavecchia conference in Italy in 2014 on financing the trans-Mediterranean transport network, and efforts by the Arab Maghreb Union (UMA) and other bodies, financing for major projects, including the railway connection, has not yielded the expected results. As a result, railway projects in different countries are undertaken with uncoordinated efforts and mainly rely on state budget funds, which are subject to the priorities of public finances.

Conclusion 5: Willingness and Coordination: It is evident that the obstacles to regional commercial integration and the development of transport and logistics services supporting this integration are largely due to a lack of willingness and coordination, despite efforts by the UMA secretariat, which has experienced a slowdown in the work of specialized commissions. The non-exploitation of certain borders for land transport in the region, delays in constructing railway line in Libya and the completion of the connection of the Tunisian network up to the Libyan borders, as well as the lack of a vision regarding the connection with Mauritania have significant medium-term impacts and hinder the development of exchanges.

Recommendations

1. Revive dialogue, through the UMA and its specialized commissions, with a shared commitment at the highest level and deeper consultation to adopt and implement a common strategy accepted and shared by all. Renewed commitment and coordination are more crucial than ever to reignite cooperation, drive regional trade, and progress in implementing the trans-Maghreb network, with a priority on the railway corridor, within a comprehensive vision for the sector and complementarity among modes, giving priority to revitalizing railways.
2. Agree on necessary measures to reduce the still high level of commercial protection, simplify and harmonize procedures, progressively reduce or eliminate tariff and non-tariff barriers, strengthen customs cooperation, and enhance transit and border crossing infrastructure.
3. Adopt, through UMA General Secretariat coordination, a mutually accepted action plan within the entire transportation system, prioritizing the railway corridor. The results of the study on the “Feasibility of Rehabilitation and Modernization of the Trans-Maghreb Railway Line” could serve as a starting point for agreeing on medium and long-term action plan priorities to effectively prioritize the railway sector for the rehabilitation and modernization of the railway network. This plan should include improving logistical performance with multimodal exchange stations. The Maghreb Rail Transport Committee (CTFM) should play a significant technical role in any strategy and action plan related to the railway corridor. Ongoing projects at the country level that serve domestic transport should be strengthened to facilitate the full resumption of transport on the corridor when decided upon. Railway connection projects should also be synergistic and complementary with other initiatives and action plans at the GTMO 5+5 and UfM levels.
4. Continue efforts at all levels of regional and global cooperation to secure financing for the Maghreb network, especially the railway connection. In this context, it is recommended to explore various financing avenues, including public-private partnerships (PPP).

Bibliography

1. “Destin – Definition and Evaluation of a Strategic Transport Infrastructure Network in the Western Mediterranean” – CETMO – 2005
2. “Study on the Cost of Non-Maghreb” – FTDES (Tunisian Forum for Economic and Social Rights), FMAS (Moroccan Forum for Alternatives), Oxfam Confederation Britsh, co-financed by the EU; November 2017
3. “Feasibility Study for the Rehabilitation and Modernization of the Trans-Maghreb Railway Line” – ITALFER in association with COMETE International and MEDEVCO; financed by the African Development Bank (AfDB) for the UMA, 2018
4. “Regional Study on Trade Facilitation and Infrastructure for Maghreb Countries” – World Bank – June 2012
5. “Facilitating International Goods Flows in the Western Mediterranean” – CETMO – 2004
6. “Railway Transport in the Maghreb” – IPEMED – 2014
7. “Report on Regional Integration in the Maghreb – Challenges and Opportunities for the Private Sector” – African Development Bank (AfDB), Maghreb Bank for Investment and Foreign Trade (BMICE) – 2019.