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Korean Railway Manufacturer Competes for ONCF's Multi-Billion Dollar Rail Contract

Saturday 06 January 2024 - 10:50
Korean Railway Manufacturer Competes for ONCF's Multi-Billion Dollar Rail Contract

The competition for Morocco's Office National des Chemins de Fer's (ONCF) extensive railway procurement contract is escalating as Korean railway manufacturer Hyundai Rotem joins the fray.

Hyundai Rotem, a subsidiary of the automotive conglomerate Hyundai Motor Group specializing in rail transport equipment, has expressed its intention to participate in ONCF's tender for the acquisition of 168 trains valued at 16 billion dirhams, with the final bids due by July 31st.

Seven companies, including Hyundai Rotem, Spanish firm CAF, German giant Siemens Mobility, Chinese titan CRRC Group, Italian-Japanese partnership Hitachi Rail STS, as well as French heavyweight Alstom and its Spanish subsidiary Talgo, have been pre-qualified for the tender.

The procurement initiative aligns with King Mohammed VI's vision of promoting sustainable and inclusive mobility in Morocco. It involves the acquisition of 150 intercity, high-speed shuttle, and commuter trains, along with 18 high-speed trains to expand the existing high-speed rail lines. The first trains are expected to arrive in Morocco by 2027, with the delivery process concluding in 2030.

Beyond the train purchases, the tender also includes partnerships for maintenance through a joint venture between ONCF and the winning bidder, along with commitments to local industrial development.

Hyundai Rotem's entry into this competitive landscape aims to challenge European heavyweights like Alstom and secure a significant share of Morocco's ambitious plans to expand and modernize its railroad infrastructure. The winner of this multi-billion dollar contract will play a pivotal role in realizing the kingdom's transportation vision for decades to come.


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