Seoul: Hyundai Rotem Co., a subsidiary of South Korea's Hyundai Motor Group, announced it has secured a monumental 2.2 trillion-won (US$1.53 billion) contract to supply advanced trains to Morocco. This deal marks Hyundai Rotem's first venture into the Moroccan market and sets a new record as the company's largest railway supply contract to date.
According to Yonhap News Agency, Hyundai Rotem will supply ONCF, Morocco's national railway operator, with double-decker electric trains. The South Korean company outpaced four global competitors in the bidding process, including Alstom from France, China's state-owned China Railway Rolling Stock Corp., and Spanish firms CAF and Talgo. These trains, designed to reach speeds of up to 160 kph, will connect Casablanca with key regions, improving Morocco's public transportation infrastructure ahead of the 2030 FIFA World Cup, which the country will co-host.
Hyundai Rotem's success is attributed to collaborative efforts with multiple government agencies, particularly the Ministry of Land, Infrastructure and Transport. Transport Minister Park Sang-woo's visit to Morocco last year was pivotal in promoting South Korea's railway industry. Additionally, the South Korean government supported the bid through its Economic Development Cooperation Fund, a low-interest loan initiative for infrastructure projects in developing countries.
A significant aspect of this deal is the local manufacturing of some train components, contributing to the development of Morocco's railway industry. Maintenance of the trains will be jointly managed by Hyundai Rotem and the Korea Railroad Corp. (KORAIL) through separate negotiations. KORAIL's commitment to technology transfers, training programs, and maintenance expertise was crucial in securing the contract.
The project is expected to benefit over 200 small and medium-sized rail sector companies in South Korea, responsible for supplying around 90 percent of the components. Hyundai Rotem also anticipates that this initiative will enhance its presence in the African railway market, where it has previously engaged in projects in Tunisia, Tanzania, and Egypt.
A Hyundai Rotem official expressed confidence in delivering high-quality trains that will ensure safe and convenient transportation for local citizens and international visitors attending the 2030 World Cup. The company expects this success to pave the way for further international contracts, as the global market is projected to grow from 258 trillion won in 2021 to 316 trillion won in 2026. Hyundai Rotem had an order backlog of 14.06 trillion won at the end of 2024.