VZCZCXYZ0047
PP RUEHWEB

DE RUEHRB #0276 0480952
ZNR UUUUU ZZH
P 170952Z FEB 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 2824
INFO RUEHMD/AMEMBASSY MADRID PRIORITY 5342
RUEHCL/AMCONSUL CASABLANCA PRIORITY 1246
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS RABAT 000276 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR NEA/MAG AND EB/TRA 
DEPT PASS TO USDOT 
 
E.O. 12958: N/A 
TAGS: ESTN EAIR EWWT ECON MO
SUBJECT: MINISTER SURVEYS MOROCCO TRANSPORT REFORMS 
 
 
¶1. (U) Summary:  Minister of Transportation and Public Works Karim 
Ghellab gave Ambassador a tour d'horizon of the reforms Morocco is 
making to its transportation sector, liberalizing its ports (septel), 
signing an Open Skies agreement with the European Union, and 
constructing a mammoth new transshipment port on the Mediterranean. 
Ghellab, a young, reform-minded technocrat, described his job as 
"building the country's infrastructure, creating the conditions for 
competition, and ensuring that the private sector operates at an 
appropriate standard."  End Summary. 
 
¶2. (U) In a Feb. 8 meeting with Ambassador, Minister Ghellab 
described his work in opening Morocco's air transport sector to 
competition, first with the United States and more recently with 
Europe.  Ghellab showed evident pride in the fact that Morocco had 
recently become the first country outside continental Europe to 
sign an Open Skies agreement with the European Union, even ahead 
of the United States. 
 
¶3. (U) Ghellab brushed aside concerns that exposure to competition 
from European carriers will harm Royal Air Maroc (RAM), which he 
described as "an independent, private company in which all the 
shares are owned by the state."  He said RAM had created its 
low-cost affiliate Atlas Blue last year specifically in order to 
face competition from European low-cost carriers once the Open 
Skies pact was signed. 
 
¶4. (U) Switching to the port sector, Ghellab said the main thrust 
of the GOM's ongoing port reform is to create competition between 
dock operators and bring down prices for shippers, importers and 
exporters. Parliament passed reform legislation in July of last 
year that will come into effect gradually during 2006 as the related 
decrees of application are finalized. 
 
¶5. (U) Ghellab spoke enthusiastically about the construction of the 
Tangier-Mediterranean port, a giant transshipment port that will 
rival Algeciras in size and eventually in volume.  Tangier-Med will 
allow shipment of goods directly from Morocco to the United States 
and Asia; all such cargo now must pass through ports in Europe. 
Asked if the new port will draw business away from the port of 
Casablanca, currently Morocco's largest, Ghellab reiterated that 
this is precisely the idea - to create competition and give private 
shippers and importers an alternative.  Ghellab said his ministry is 
spending $800 million on land transportation infrastructure that 
will link Tangier-Med by rail and highway to Rabat and Casablanca. 
 
¶6. (U) Moving finally to maritime transportation, Ghellab said state 
shipping company Comanav, already 50 percent private owned, will be 
privatized completely by the end of 2006. 
 
¶7. (U) Comment:  Minister Ghellab, born in 1966, is a capable and 
well-respected technocrat who is considered an up-and-coming member 
of the political elite.  He was educated in France but speaks fairly 
good English.  He comes across as a dyed in the wool reformer with a 
modern view of the role of the government.  His style, even office, 
is hands-on and all business.  Midway through the meeting Ghellab 
grabbed pen and paper to draw diagrams of the new port, rail and 
road projects, a dramatic change from the more laid back, older 
generation ministers. In another departure from tradition, this was 
a rare minister-level meeting with no staff present.  We expect to 
see more of Ghellab in the future, in increasingly responsible 
positions.  End Comment. 
Riley