Algeria and China on Sunday inked a deal worth $3.3 billion to build and operate the new center transshipment port of Cherchell in Algeria.

The agreement was signed between Algeria's Transport Ministry, China Harbour Engineering Company (CHEC) and China State Construction Engineering Corp (CSCEC).

Under the deal, the two sides will establish a consortium company to build the port, some 60 kilometers west of Algiers, the country's capital. Establishment of the consortium is expected to be finalized in March.  

The port will have 23 docks capable of processing 6.5 million 20-foot containers and 26 million tons of goods per year, according to Algeria's Transport Ministry. Port traffic in the country's central region is expected to hit 35 million tons or 2 million 20-foot containers per year by 2050, the ministry said.

The project will be completed within seven years and gradually put into service within four years with China's Shanghai Ports Group ensuring its management.

Bringing in Shanghai Port Group "would help driving international shipment traffic coming from Southeast Asia and other continents to pass from this Center Port, under the transshipment process to continue sea transport to elsewhere, or use the Algerian highway and railway networks to carry shipments to Africa," said Algerian Transport Minister Boudjemaa Talai.

Wen Jingfei, CHEC representative at the signing ceremony, told Xinhua that this project is important for Algeria and the Mediterranean region and Africa.

He said 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.

Algeria's neighbors such as Mali will also benefit from a port, he said.

Zhou Sheng, the CSCEC representative, said the deal will help Algeria, which is facing a difficult period.