Hyundai Rotem enters Morocco with a landmark $1.5 billion train deal

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Hyundai Rotem enters Morocco with a landmark $1.5 billion train deal

Published: 26 Feb. 2025, 17:25 Updated: 26 Feb. 2025, 20:08

JIN EUN-SOO
[email protected]

Audio report: written by reporters, read by AI

Hyundai Rotem's NIF double-decker trains supplied to Australia under a deal signed in 2016 [HYUNDAI ROTEM]

Korea's Hyundai Rotem agreed to supply the Moroccan National Railways Office with its double-decker electric train for 2.2 trillion won ($1.5 billion), marking the train-to-defense system manufacturer's biggest single deal to date and first entry into the North African country.

The Hyundai Motor Group affiliate agreed to supply Morocco with an unspecified number of trains through Jan. 25, 2034. A separate deal will be sealed regarding the maintenance and repair of the trains involving Hyundai Rotem and the state-run Korea Railroad Corporation (Korail).

Hyundai Rotem enters Morocco with a landmark $1.5 billion train deal.

The double-decker environmentally friendly train can travel at 160 kilometers (99.4 miles) per hour and is poised to connect major cities of Morocco with Casablanca at the center. Hyundai Rotem expects the latest supply of its trains, a portion of which will be manufactured in Morocco, will be able to enhance the country's public transportation in time for the 2030 World Cup.

“Hyundai Rotem's capability to stably operate and manage the project as well as its collaboration with Korail to conduct maintenance and repair afterward were perceived well,” a spokesperson for the Korean company told the Korea JoongAng Daily. “It was a neck-and-neck match until the end since it was a sizable deal.”

Other contenders for the deal weren't disclosed but it was reported that France's Alstom, China's CRRC and Spain's Patentes Talgo SAU participated in the bid.

Given the contenders, Hyundai Rotem was not in the most advantageous position to win the bid since Alstom has worked in several railway projects in Morocco including a recent deal to provide high-speed trains connecting the cities of Kenitra and Marrakesh, a span of 380 kilometers. China's state-backed CRRC was the largest player in the high-speed rolling stock industry, referring to trains and rail vehicles for high speeds, with 30.4 percent by revenue in 2023, followed by Alstom with 17 percent. Hyundai Rotem ranked in 13th with 1.1 percent, according to data from consulting firm Rollingstock.

Backing from Korea's Ministry of Land, Infrastructure and Transport also helped persuade the Moroccan government, Hyundai Rotem says.

Land Minister Park Sang-woo paid a visit to Morocco in 2023 to meet officials and invited them over to Korea to promote Korea's railway competitiveness, it said.

The Korean government also offered financial support through Economic Development Cooperation Fund which provides low-interest loans to developing countries

In partnership with Korail, Hyundai Rotem suggested across-the-board collaboration, such as on the transfer of Korea's technology in maintenance and repair as well as training programs.

“The latest deal is a result of the unified efforts of the public and private sectors and a testament to the global competitiveness of K-rail,” the company said.

“We will do our best to supply high-quality trains that ensure a safe and convenient experience for local residents as well as visitors to the 2030 World Cup.”

Before the Morocco train deal, Hyundai Rotem's biggest single deal was with Australia and worth 1.4 trillion won.

BY JIN EUN-SOO [[email protected]]