Hyundai Rotem Secures Record 2.2 Trillion Won Moroccan Train Order, Historic Foray into African Market

Image Source: ET Infra

Hyundai Rotem, South Korea's Hyundai Motor Group rail manufacturing subsidiary, has won a historic order worth 2.2 trillion won (about $1.53 billion) from Morocco's national railway company, ONCF. The contract, announced on February 26, 2025, is the biggest in Hyundai Rotem's history and its first foray into the Moroccan market, creating a new benchmark for Korea's railway industry globally.

Historic Contract Value:

The 2.2 trillion won contract (approximately 424.9 billion INR) surpasses all Hyundai Rotem orders so far, including large-scale projects in Australia and the U.S., and is a significant milestone in the African market.

Scope of the Order:

Hyundai Rotem will deliver 150 double-deck electric train vehicles with a speed of up to 160 km/h. These trains will cover major areas in and around Casablanca, Morocco's largest city, and are slated to be one of the primary drivers of transforming the country's public transport infrastructure in preparation for the 2030 FIFA World Cup, for which Morocco is co-hosting.

Collaborative Success

The deal was clinched through the joint efforts of the "Korea One Team," a consortium that includes Hyundai Rotem, Korea Railroad Corp. (KORAIL), and South Korean government agencies. The bid was supported by the Economic Development Cooperation Fund (EDCF) and direct diplomatic involvement between Moroccan and South Korean officials.

Local Industry Impact

Around 90% of train parts will come from more than 200 small- and medium-sized enterprises from South Korea, increasing Korea's rail sector export and technology transfer. Locally, parts will also be produced in Morocco to support Morocco's industrialization.

Maintenance and Technology Transfer:

KORAIL and Hyundai Rotem will mutually negotiate maintenance contracts with ONCF that involve technology transfer and training activities to establish local capabilities and create long-term sustainability in operation.

Strategic Significance

The transaction not only provides an entry point for Hyundai Rotem in Morocco but also enhances Korea's competitive standing in future African rail contracts, drawing on its experience in Tunisia, Tanzania, and Egypt.
This contract is a demonstration of the Korea One Team program's success and international competitiveness recognition of K-Rail. We are dedicated to delivering high-quality trains that will offer safe and convenient travel for local citizens and visitors to the 2030 FIFA World Cup Centennial Tournament," a Hyundai Rotem official said.

Hyundai Rotem's record Moroccan order will revamp the country's rail infrastructure and cement Korea's position as a world leader in cutting-edge train technology.

Source: Reuters, Business Korea, The Korea Times, Chosun, Korea JoongAng Daily