According to the World Bank and Alphaliner’s most recent rankings, Tanger Med places among the top 25 container ports worldwide by efficiency and throughput. CEO Mehdi Tazi-Riffi tells fDi about the port and industrial complex’s expansion plans and how it will continue to serve multinationals of all kinds.
Q: How is the port’s capacity set to grow in the coming years?
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A: The main two verticals of activity in the port are containers and trucks. Last year, traffic throughput was 7.6 million 20-foot equivalent units (TEU) and we have a nominal capacity of around 9 million TEU, so we still have capacity to grow. In terms of trucks, we are conducting a capacity extension, which is very important because this is the translation of our gateway import/export to Europe. Last year, we attained [a processing capacity of] approximately 460,000 trucks, and our objective is to double our capacity and reach more than a million trucks annually.
The next phase of development also includes a new port that is being developed eastwards of Tanger Med: Nador West Med. It’s not managed directly under the same agency, but we’re a shareholder in the company and it should be completed by the end of 2024. It will offer capacity both for containers and for other traffic — in particular liquid bulk.
As for the industrial cluster, we have a reserve of 2500 hectares (roughly 25 million square metres) of available land that we will continue to develop over the next 10 years.
Q: The pandemic has accelerated the shift towards nearshoring. What benefits has Tanger Med reaped from this?
A: Due to our proximity to Europe, and because we are on the highway of global trade, we are in a natural position for nearshoring.
In times of uncertainty, if you’re a multinational, you’ll look for spots that allow you to adapt to different market changes. What is interesting, though, is that the spectrum of foreign direct investment (FDI) has changed over the past decade. The first companies that settled here were Japanese; then we had a lot of European FDI followed by Indian FDI, and now we see more and more Chinese companies.
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But it’s not only our geographical position that attracts these companies, it’s also our competitiveness, connectivity and efficiency.
Q: Tanger Med stands at the crossroads of a splintering world. Are you concerned about geopolitical divisions?
A: Some multinational companies have opted for a China+1 strategy; some have said they are part of decoupling between the US and China. Our job is to continue to offer the right options for multinationals.
If we start receiving Chinese companies that are looking to serve the European market, while being at the doorstep of Europe, that makes us quite interesting. At the same time, we’ll also serve European companies that are looking for nearshoring and controlled options instead of traditional offshoring, say, in the Far East.
For European companies, it’s nearshoring, for Indian companies, say, it’s offshoring. When we talk about ‘position’, it’s not only geographic in that it allows multinationals cost-savings in terms of logistics, but it’s also about the right bet to address future uncertainties.
From a business standpoint we’re in the right spot to serve multinationals investing in nearshoring and offshoring.
This article is part of the Special Report:
Tanger Med's rise as a nearshoring hub