Morocco’s $10 Billion High-Speed Rail Expansion Draws Global Competitors

Morocco plans to connect Marrakech to Agadir - in order to bring the southern provinces closer together - and extend the current LGV Tanger-Kénitra-Casablanca to Marrakech. The overall cost of this mega-project is estimated at around 100 billion dirhams, or about 10 billion euros. To carry out this project, the kingdom is banking on "a public-private partnership". The upcoming tenders will soon be launched.

The French industrial group Alstom will have to face stiff competition. The German Siemens, the Spanish CAF, the South Korean Hyundai, or the Chinese giant CRRC could bid. In China for example, Siemens has won a major contract by accepting significant technology transfers that Alstom has refused, reports BFMTV. The French industrialist must therefore make a big effort on the price to win the market. In this sense, it could "offer its new TGVM which has a 20% lower acquisition cost and -30% for maintenance costs".

France’s close relations with Morocco could be of great help to Alstom. "Especially if massive loans are again granted to carry out these new projects". Paris had financed the train connecting Tangier to Casablanca, inaugurated in November 2018.