China and Algeria on Sunday signed a deal to build a new transshipment port center in the north African country. The agreement was signed in Algeria between Algeria's Transport Ministry, China Harbour Engineering Company (CHEC) and China State Construction Engineering Corporation (CSCEC).

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The $3.3 billion deal to build the seaport in Cherchell, about 60 km west of the capital Algiers, will see both sides create a consortium company to oversee the project. The formation of the company will likely be finalized by March 2016.

The construction of the Cherchell port is expected to be completed within seven years. It will be gradually put into use within four years under the supervision and management of China's Shanghai Ports Group. The planned port will have 23 docks that can process about 6.5 million 20-foot containers and 26 million tons of goods each year.

The plan for the seaport construction was approved by the Algerian government, who released the $3.3 billion on Thursday, Jan. 14. The involvement of Shanghai Port Group in the plan would attract international shipments traffic from several continents including Southeast Asia to pass the sea port, according to Boudjemaa Talai, Algerian Transport Minister.

Algerian authorities expect the port to be a major transhipment hub created with strong intermodal connections.  

Port traffic in the Algeria's central region is expected to hit 35 million tons or two million 20-foot containers per year by 2050, according to Algeria's Transport Ministry.   

According CHEC representative Wen Jingefei, the project is not only important for Algeria but for the whole Mediterranean region and Africa. He noted that the Algerian government has wanted to build this mega Central Harbor for many years, and it has positioned it as a transit port in the Mediterranean area that will provide service to North Africa and Europe.

TagsAlgeria, Build Mega Seaport, center transshipment port at Cherchell, Shanghai Port Group