Transport Ministry replies to Louiza Hanoune: “No privatization of SNTF Railway Company in the offing”

The National Company of Railway Transport (SNTF) will become a public group corporation wholly owned by the State, said on Wednesday, August 12, Mr Boudjemaa Talai, Minister of transport. The Minister has totally excluded by the same token any privatization of the company in the years to come.

“The management of all activities of the SNTF and those of its subsidiaries must be overhauled in a organized and programmed manner (…) through the transformation of the EPIC/SNTF in “Public Group SNTF”, which will remain the full property of the State and which will never be the subject of a any privatization, given that it represents a strategic sector, similarly to those of education, health etc…”, asserted the Minister in a statement. The Company’s transformation should start as early as 2019, he affirmed.

On 6 August, Mr Boudjemaa Talai had announced that the SNTF Company should be transformed into an SPA corporation as from 2019. An announcement that has been interpreted as a commitment by the Algerian State to opening the capital of this Company to the private sector.

This assumption was bitterly criticized by some political quarters notably by the Workers’ Party leader Louiza Hanoune who also accused, in the recent past, former energy minister Chakib Khelil of seeking to privatize the national hydrocarbons Company “Sonatrach”.

“The current organization of the EPIC/SNTF is called to be revamped for better management of its portfolio, consisting of 10 EPE/Spa, 4 participating minority subsidiaries and which operate in the following lines of trade:  logistics, signaling, express mail, electrification, catering, maintenance, telecommunications, energy, studies and achievements”, Mr Talai underlined to this effect.

The transformation of the SNTF, necessitated by the size of the projects and the importance of investments,  ‘ engaged both in infrastructure and in materials and equipment, which will result in the medium term with the setting up of an expanded  network of 12,500 kms of railway lines”, (The current national railway network is estimated at 4,000 kms only), the Minister explained.

“The volume of the goods currently transported by the SNTF is 4.5 million tons, and it must evolve by the year 2020 to approximately 30 million tons per year. The number of passengers currently being set at 32 million per year, is expected to increase to 80 million per year within the same time frame”, he added.