Seoul: Hyundai Rotem Co., a subsidiary of South Korea's Hyundai Motor Group, announced on Wednesday that it has secured a 2.2 trillion-won (US$1.53 billion) contract to supply advanced trains to Morocco. This deal represents Hyundai Rotem's largest railway supply contract to date and marks its first venture into the Moroccan market.
According to Yonhap News Agency, the contract involves supplying double-decker electric trains to ONCF, Morocco's national railway operator. These trains, which can reach speeds of up to 160 kph, aim to enhance transportation infrastructure by connecting Casablanca with key regions in Morocco, particularly in preparation for the 2030 FIFA World Cup, which Morocco will co-host.
The agreement includes local manufacturing of some components to support the development of Morocco's railway industry. Additionally, Hyundai Rotem and the Korea Railroad Corp. (KORAIL) will jointly handle train maintenance through separate negotiations.
Hyundai Rotem credited its success to the collaborative efforts of multiple South Korean government agencies, especially the Ministry of Land, Infrastructure and Transport. Transport Minister Park Sang-woo's visit to Morocco last year played a significant role in promoting South Korea's railway industry. The South Korean government also bolstered Hyundai Rotem's bid through the Economic Development Cooperation Fund, offering low-interest loans to support Morocco's infrastructure projects.
KORAIL's commitment to providing technology transfers, training programs, and maintenance expertise was instrumental in securing the contract. Hyundai Rotem anticipates that the project will benefit over 200 small and medium-sized rail sector companies in South Korea, which will supply about 90 percent of the components.
This project is expected to boost South Korea's footprint in the African railway market. Hyundai Rotem has already been involved in railway projects in Tunisia, Tanzania, and Egypt. The success in Morocco is poised to strengthen its competitive stance in future bids.
"We will ensure the delivery of high-quality trains that provide safe and convenient transportation for both local citizens and international visitors attending the 2030 World Cup," a Hyundai Rotem official stated.