Getting shipshape for expansion
SHIPPING LIBYA'S MARITIME AUTHORITIES ARE PREPARING FOR AN INCREASE IN BOTH CARGO AND CRUISE PASSENGERS NOW SANCTIONS HAVE BEEN LIFTED

The Germa Shipping company has offices in all Libya’s major ports and is looking for investment to upgrade its infrastructure.

DEVELOPMENT of the transportation system is a prerequisite to Libya achieving its long-term ambitions of becoming a gateway between Europe and Africa and building up a profitable tourism industry.

Before the revolution in 1969, Libya possessed just a handful of ports. Today, there are more than 21 harbors and terminals along its coast, some dedicated to commercial purposes and others to petroleum and industry.

Bashir Benhamed, Chairman of the Maritime Transport and Ports Administration, believes there is scope for almost doubling handling capacity. “We have a total volume capacity of about 16 million tons per year that could be increased to about 30 million tons per year,” he says.

“We intend to call upon foreign companies likely to be interested in investing in Libyan ports so that we can together draw up a strategic plan, undertake feasibility studies, and agree on what we need to do.”

According to Mr. Benhamed, the objective is to restructure the whole sector to bring it up to international standards in terms of administration and infrastructure.

“We are talking of security and safety and all the other elements that go with it. We are also talking about free ports and the development of passenger terminals, and we are working to attract more passenger ships.”

BASHIR BENHAMED Chairman of the Maritime Transport and Ports Administration	MANSOUR EL MEHDI SALEH Chairman of the Germa Shipping Company	FARID A. ALGHEBLAWI Chairman of the Universal Shipping Company

A free-trade zone is in the early stages of being established adjacent to Misurata Port, 130 miles east of Tripoli, and there are plans for modern passenger terminals at Khoms and Benghazi.

Mansour El Mehdi Saleh, Chairman of Libya’s leading shipping firm, the Germa Shipping Company, observes that the economy is picking up faster than expected, and this is reflected in the level of activity in the ports.
“Now that the sanctions have been lifted, ships are coming in and out with hundreds of tons of goods,” he says. “Currently, the volume of commercial operations is up by about 45% to 50%, which is very good for us.”

Germa is doing business with European countries such as Italy, Germany, and Greece. The company acts as sole agent for some of the world’s leading shipping firms. It handles everything from container ships to tramp vessels and cruise ships, including specialized carriers for cargos such as automobiles, iron ore, crude oil, and liquefied natural gas.

Formed in 1983, Germa has its headquarters in Tripoli and offices in all Libya’s major commercial and industrial ports—linked via a sophisticated modern network system.

Germa has already laid the foundations for operating in a more competitive environment. “We will have to build on them to improve our operations,” says Mr. Saleh. “There used to be only a few shipping agents in operation in Libya. Now we have more than 60. This means competition and will increase the quality of services.”
Plans have been made to replace some of Germa’s older equipment and to renovate and upgrade its container depots. Interest has been shown by European investors and Germa hopes to attract interest from the United States as well.

Mohammed Tata, Manager of Germa Shipping, says the company’s main priority is to improve the infrastructure and communication facilities.

“We have made significant investment in manpower, training and a computerized documentation system both to maintain contact and to receive information. We offer clients an Internet tracking service through which they can follow their products.” He continues, “Our accounting system has been upgraded and integrated with our agency software. This gives us fast, accurate financial and statistical information to pass on to our principals.”

Farid A. Algheblawi, Chairman of the Universal Shipping Company, says most of Libya’s ports need to be upgraded in order to be able to take in more cargo, but he believes a bright future lies on the horizon.
“Sooner or later, Libya is going to be a dominant maritime force between Europe and Africa,” he says.
Universal’s history and experience goes back to 1973 when it was established as the Universal Services Agency and became one of the leading shipping agencies in the country.

It subsequently became a subsidiary of the General National Maritime Transport Company, (GNMTC), but emerged as an independent, publicly owned company in 2003, following a government decree.
Universal has branches in Tripoli, Misurata, Benghazi, and all the Libyan oil terminals, and continues to work closely with GNMTC. “We are still an agency for most of their ships,” explains Mr. Algheblawi. “We coordinate our activities with them and, in fact, serve them as a national line.”

The Universal Shipping Company has more than 30 years experience to build on.

Currently, the company is focused on improving and expanding its operations. “We have been negotiating with a number of companies and have more than 10 who are ready to work with us,” says Mr. Algheblawi.
Libyan ports are expecting to see an increase in the number of cruise ships calling this year, as more and more cruise lines add the country to their schedules.

MSC Cruises, the largest Italian-owned cruise company, added three stops in Tripoli to its cruise roster last year. MSC Cruises is part of the Mediterranean Shipping Company (MSC), the second largest shipping company in the world, which started serving Libya as a container carrier in 2002.

Esterlab Shipping Agency, part of the HB Group, and MSC’s agent in Libya, believes that Libya offers huge potential for growth. “We have done very well so far,” says Naser Alkshaik, Esterlab’s General Manager. “Expansion is our top priority.”