Casablanca – Morocco is accelerating the modernization of its railway network through a strengthened financial partnership between the National Railways Office (ONCF) and the European Investment Bank (EIB). The latest agreement, signed in March 2026, brings additional funding aimed at upgrading infrastructure, improving service quality, and supporting the country’s transition toward sustainable transport.

Under the new deal, ONCF secured approximately $67 million in additional financing, including about $52 million in loans and $15 million in investment grants provided through the European Union’s Neighborhood Investment Platform. This latest contribution raises the total EIB financing mobilized for Morocco’s rail sector to around $273 million.

This new funding builds on a major agreement signed in November 2022, when the EIB committed roughly $206 million as part of a broader $258 million financing package designed to support the long-term development of Morocco’s railway system. The combined investments are aligned with ONCF’s strategic plan for the period 2019–2030, which focuses on modernizing conventional rail infrastructure and enhancing operational performance across the network.

Large-scale network rehabilitation

The investment program targets the comprehensive rehabilitation of Morocco’s railway network, which extends over approximately 2,300 kilometers. The initiative aims to address aging infrastructure while introducing modern technologies to improve efficiency and safety.

Key components of the program include the renewal of railway tracks, the rehabilitation of engineering structures such as bridges, and the upgrading of electric traction systems. Industrial facilities, including maintenance workshops and technical equipment, are also set to benefit from modernization efforts.

In parallel, ONCF plans to strengthen core operational systems by improving signaling, telecommunications, and safety mechanisms. These upgrades are expected to enhance the reliability of train operations and reduce delays, ultimately improving the passenger experience.

The modernization program is also designed to increase network capacity and reduce travel times, supporting growing demand for both passenger and freight transport. Morocco’s rail sector has seen steady expansion in recent years, driven by urbanization, economic growth, and rising mobility needs.

Strong growth outlook

ONCF anticipates continued growth in its activities, supported by increased passenger traffic and sustained momentum in freight transport. The operator expects its annual revenue to exceed approximately $515 million in 2025, reflecting improved performance and higher demand for rail services.

This growth outlook is reinforced by ongoing investments and the adoption of ambitious budgets aimed at expanding and upgrading the network. The railway sector is increasingly viewed as a strategic pillar for Morocco’s economic development, particularly in facilitating trade and improving connectivity between regions.

Advancing sustainable mobility

Beyond infrastructure improvements, the modernization program is closely linked to Morocco’s environmental objectives. Rail transport is widely recognized as one of the most energy-efficient and low-emission modes of transportation, producing up to 80% less carbon dioxide than road transport.

By strengthening the rail network, Morocco aims to reduce its overall transport-related emissions and promote a shift toward more sustainable mobility solutions. This aligns with broader national efforts to transition to a low-carbon economy and meet international climate commitments.

The program also incorporates measures to enhance climate resilience. Planned initiatives include flood protection systems and infrastructure adaptations designed to mitigate the impact of extreme weather events. In 2024, ONCF and the EIB signed a technical assistance agreement to support the development of a comprehensive climate adaptation strategy for the railway network.

Strategic partnership with the European Union

The collaboration between ONCF and the EIB is part of a wider framework of cooperation between Morocco and the European Union. Notably, the railway financing program represents the first project implemented under the EU–Morocco Green Partnership, launched in October 2022.

This partnership focuses on strengthening cooperation in areas such as sustainable development, clean energy, and climate action. Within this context, the rail sector plays a central role due to its potential to combine economic efficiency with environmental sustainability.

The EIB’s continued support reflects confidence in Morocco’s long-term infrastructure strategy and its commitment to modernizing key sectors of the economy. The financing also highlights the growing importance of international partnerships in supporting large-scale development projects.

Toward a regional transport hub

With sustained investment and modernization efforts, Morocco is positioning its railway network as a key component of its broader logistics and transport ecosystem. Improved rail connectivity is expected to enhance links between major cities, ports, and industrial zones, contributing to more efficient supply chains and regional integration.

As the country continues to invest in infrastructure and sustainable transport solutions, the railway sector is likely to play an increasingly important role in supporting economic growth and environmental goals.

The latest financing agreement signals that Morocco’s rail modernization journey is far from complete, with further developments expected in the coming years as the country strengthens its position as a regional transport and logistics hub.