SGTM Wins $200 Million Final Contract for Kenitra-Marrakech High-Speed Rail Project

Friday 13 December 2024 - 08:50

By: Dakir Madiha

SGTM Wins $200 Million Final Contract for Kenitra-Marrakech High-Speed Rail Project

Morocco’s new high-speed rail will cut journey times between Tangier and Marrakech from seven hours to just 2 hours 45 minutes by 2029.

Morocco’s National Railways Office (ONCF) has awarded the eighth and final lot of civil engineering works for the Kenitra-Marrakech high-speed rail line (LGV) to Société Générale des Travaux du Maroc (SGTM), valued at MAD 2 billion ($200 million). SGTM’s bid was the most competitive, undercutting ONCF’s estimate of MAD 2.1 billion ($210 million), and beating competitors like the SNCE-CAPEP-SEPROB consortium, China’s CCECC, and the GPRT NGE Contracting-Guintoli partnership.

The contract involves earthwork operations and engineering structures in the Bouregreg Valley region. SGTM joins four other Moroccan companies in securing contracts for the LGV project: TGCC (MAD 2.83 billion/$283 million), Jet Contractors (MAD 2 billion/$200 million), Mojazine Group (MAD 1.97 billion/$197 million), and STAM (MAD 2.4 billion/$240 million). Chinese firms also play a major role in the project, with Gezhouba (MAD 2.32 billion/$232 million), CRCC 20 (MAD 2.83 billion/$283 million), China Railway No.04 Engineering (MAD 3.4 billion/$340 million), Shandong Hi-Speed Engineering-Construction (MAD 4.5 billion/$450 million), and Covec (MAD 1.3 billion/$130 million) all securing key contracts. French firm GTR, a subsidiary of Colas, secured a MAD 2.2 billion ($220 million) contract.

The comprehensive project will construct a dedicated high-speed line between Kenitra and Marrakech, connect it to existing lines, upgrade stations, and modernize the conventional Kenitra-Rabat-Casablanca-Marrakech line. New terminal facilities and maintenance bases will also be built. The route will connect Kenitra’s maintenance base to Rabat’s northern tunnel, continuing from Aïn Atiq and Zenata, and proceeding to Marrakech via the new Nouaceur hub, which will serve as a connection point for Casablanca’s Mohammed V International Airport.

This 430-kilometer project, valued at MAD 53 billion ($5.3 billion), is part of ONCF’s larger MAD 87 billion ($8.7 billion) railway development program, which aims to prepare for the 2030 World Cup. The African Development Bank recently announced $14 billion in investments for ONCF’s rail projects, exceeding the initial funding request of $8.8 billion.

Upon completion, the high-speed rail will reduce travel time between Tangier and Marrakech to 2 hours and 45 minutes by 2029, down from the current 7 hours. ONCF reported transporting 52.8 million passengers in 2023, including 5 million on the existing high-speed line, along with 17 million tonnes of freight. The network spans 2,309 kilometers, with 200 kilometers of high-speed lines and 64% of the network electrified.

Future expansion plans are already in place, with potential extensions from Marrakech to Agadir, as well as further developments toward southern regions like Laayoune and Dakhla. Additionally, ONCF plans to acquire 168 new trains to modernize its fleet and meet growing passenger demand.