Updated 8th September 2025- Construction work on El Hamdania port in Algeria was given a green light after the government approved construction of the new deepwater port. The $4.7 billion project, which envisages a task for an overseas partner, will be executed in two stages.
Furthermore, the port will be situated close to the town of Cherchell, in Tipaza province, some 80 km west of Algiers.
Project Factsheet
Location: El Hamdania, near the town of Cherchell
Timeline and status:
- Agreement: A memorandum of understanding (MOU) was signed in January 2016 between the Algerian government and a Chinese consortium.
- Initial timeline: Construction was initially scheduled to begin in 2017, with an estimated completion date of 2021 and full completion by 2023.
Financiers: Export-Import Bank of China (China Eximbank)
Why was El Hamdania Chosen for the Project?
This is a natural sheltered bay and provides a draught of up to 20m. Also, El Hamdania is a chosen industrial development centre, with present connections to the national highway network and to a local power station.
Challenges Facing the Project
However, Algeria reportedly decided not to entrust China with the construction of the major port. With China apparently sidelined, the French shipping giant CMA CGM has emerged as a likely candidate to take over the project. With these changes, they delayed the development of the project and made the project wait.
In a recent turn of events and what is termed as a win for China, the country bounced back strongly on the project after Algeria relaunched the project in partnership with China. The China State Construction Engineering Corporation (CSCEC) has been given the task to lead the project.
Also read:China to construct mega sea port in Algeria
Plans visualize construction of up to 23 berths, bestowing the port a combined capacity of 25.7 Mtpa.
South Korea-based Yuhill-Yooshin and Algeria’s Laboratoire des etudes maritimes (LEM) finished a comprehensive plan, and the project secured $900m worth of funding from the African Development Bank (AfDB), enabling the project to go on. The AfDB loan will be reimbursed 20 years, with five years’ grace.
El Hamdania, which is situated 70km west of Algiers, is to be developed in stages with ultimate yearly handling capacity of 6.3m, spread over 23 berths. TEU measures a ship’s cargo carrying capacity, and the measurement is equal to 20 feet in length and 8 feet in height.
Significance of the Port
Additionally, the new hub is designed to become one of the largest transhipment ports in the Mediterranean
This would categorize it second in Africa, after Tanger Med’s 9m TEU per year.
The port is to be developed by China Harbour Engineering Company and China State Construction Engineering Corporation, which will take a combined 49% stake in the operating company, with the Algerian Port Authority taking 51%.
Lastly, It was stated in Algiers that a conglomerate of Chinese banks would offer additional funding. However, the names of the institutions were not revealed. Still, the involvement of Chinese firms in the plan shows that Chinese funding is probable.
Other Major Seaport Projects
The El Hamdania Port project will join Nigeria’s Bakassi deep sea port as one of Africa’s ports that position the continent as a gateway to regional trade and economic growth. Additionally, it will be a boost to the economy of Algeria and be a source of employment to many in the country.
