Casablanca – In a significant move towards modernizing Morocco’s rail infrastructure, the National Office of Railways (ONCF) has initiated negotiations with South Korean manufacturer Hyundai Rotem under the international tender DC01/PM/2023. This pivotal project, valued at approximately $1.6 billion, marks a transformative step in enhancing the country’s rail network.
The negotiations, which began yesterday, will extend over the coming week. They aim to address the technical, financial, administrative, and legal dimensions of the contract, focusing on the development of a comprehensive rail ecosystem in Morocco and the long-term maintenance of the trains. The project represents a substantial investment in both the acquisition of new rolling stock and the establishment of a robust maintenance regime lasting 20 years.
Hyundai Rotem, renowned for its expertise in railway equipment manufacturing, is competing against several major industry players, including France’s Alstom, Spain’s Talgo and CAF, and China’s CRRC. Each company is contending for various segments of the contract, which encompasses the provision of 168 trains divided into four distinct categories: 18 high-speed trains, 40 intercity trains, 60 shuttle trains (TNR), and 50 trains for the Regional Express Network (RER).
Hyundai Rotem’s bid is notable not only for its scale but also for its commitment to local industry development. The Korean manufacturer has expressed intentions to build a train manufacturing plant in Morocco and transfer advanced technology to the kingdom, potentially boosting the local industrial sector. This strategic partnership is aimed at not just fulfilling immediate rail needs but also fostering long-term growth in Morocco’s rail capabilities.
The negotiation process follows a series of high-level meetings held in July between Moroccan and Korean officials. Korean Minister of Land, Infrastructure, and Transport, Sangwoo Park, met with Moroccan Minister of Transport and Logistics, Mohamed Abdeljalil, while Hyundai Rotem CEO, Lee Yong-Bae, engaged with Moroccan Minister of Industry and Trade, Ryad Mezzour. These discussions highlighted Hyundai Rotem’s advanced electric high-speed trains and reinforced the potential benefits of their proposed local manufacturing initiative.
Hyundai Rotem’s participation in the World High-Speed Rail Conference in Marrakech in March 2023 further underscored their expertise in high-speed rail technology, showcased through their KTX trains operated by Korea Railroad Corporation.
As the ONCF moves forward with negotiations, they will also engage with Alstom, Talgo, CAF, and CRRC. The aim is to refine the project specifications to meet Morocco’s needs precisely. Following the finalization of these specifications, selected companies will be invited to submit their best offers within a month.
The decision on awarding the contract, whether to a single supplier or a combination of companies, is anticipated by the end of October. This decision will mark a new chapter in Morocco’s rail transportation, enhancing both the efficiency and capacity of the national rail network and setting a precedent for future infrastructure projects.
