Hyundai Rotem Secures Record $1.5 Billion Train Deal with Morocco

Hyundai Rotem has signed a record 2.2 trillion won ($1.5 billion) contract with Morocco, supplying double decker trains to improve local public transport ahead of the 2030 World Cup. The trains will connect key regions, and parts will be sourced from Korean SMEs. This marks Hyundai Rotem’s first entry into Morocco and strengthens its African market presence.

Hyundai Rotem has secured a historic contract worth 2.2 trillion won (approximately $1.5 billion) with Morocco’s National Railways Office, marking the company’s largest single train order to date. This agreement, signed recently, entails the supply of state-of-the-art double decker trains to enhance public transportation across Morocco, particularly in preparation for the 2030 World Cup, which the nation will co-host with Spain and Portugal.

The double decker trains, which will travel at speeds of up to 160 kilometers per hour, are intended to connect Morocco’s largest city, Casablanca, with several other vital regions. In a bid to strengthen the local railway industry, Hyundai Rotem plans to produce some of the trains within Morocco. Furthermore, maintenance and repair services will be managed by Hyundai Rotem in collaboration with the state-run Korea Railroad Corporation (Korail) through discussions with Moroccan officials.

This significant contract is anticipated to bolster the operations of smaller Korean enterprises, as nearly 90 percent of the train components will be sourced from South Korea’s small to medium-sized firms. The partnership signifies Hyundai Rotem’s inaugural venture into the Moroccan market, attributed to collaborative efforts between public and private sectors, including support from the Ministry of Land, Infrastructure and Transport and Korail, to effectively compete against European bidders.

High-level discussions facilitated by Transport Minister Park Sang-woo last year in Morocco were pivotal in promoting the competitiveness of Korea’s railway sector. Positive feedback was received regarding Korail’s proposal for technology transfer and specialized training, further solidifying the deal’s foundation. With this agreement, Hyundai Rotem aims to strengthen its foothold in the African market, building upon previous collaborations in countries such as Tunisia, Tanzania, and Egypt.

Hyundai Rotem has secured other sizable contracts in the past, including projects for Australia and Los Angeles, which underscore its growing presence in the global railway industry. A spokesperson from Hyundai Rotem remarked on the achievement, citing the successful collaboration of both public and private entities as crucial to demonstrating Korea’s railway competitiveness.

“The secured order is a case that was achieved through ‘One Team Korea’ bringing the public and private sectors together, acknowledging the Korean railway’s competitiveness in the global market,” stated a Hyundai Rotem official. “We will do our best to supply high quality trains to not only (Moroccan) citizens but also visitors to the 100th World Cup in 2030 so they can safely and conveniently ride them.”

In conclusion, Hyundai Rotem’s contract with Morocco represents a milestone in the company’s international endeavors, enabling the enhancement of public transportation in preparation for the 2030 World Cup. This agreement not only emphasizes the importance of teamwork across various sectors but also positions Hyundai Rotem for further growth within the African market by supporting local industry and providing high-quality transportation solutions.

Original Source: www.koreaherald.com