Synopsis
Acting President Choi Sang-mok has extended his gratitude to King Mohammed VI of Morocco for securing a $1.5 billion train supply contract with Hyundai Rotem. This agreement is the largest overseas railway vehicle deal for a South Korean company and enhances Morocco's transportation ahead of the 2030 FIFA World Cup.Key Takeaways
- Choi expresses gratitude to King Mohammed VI.
- Hyundai Rotem secures a $1.5 billion contract.
- Double-decker trains will connect Casablanca to key regions.
- 90% of components sourced from local SMEs.
- Deal enhances Morocco's railway industry.
Seoul, Feb 26 (NationPress) Acting President Choi Sang-mok has communicated a message of thanks to King Mohammed VI of Morocco after a South Korean firm clinched a significant agreement to deliver cutting-edge trains to the North African country, as reported by Choi's office on Wednesday.
According to the contract valued at 2.2 trillion won (approximately US$1.53 billion), Hyundai Rotem Co., a subsidiary of Hyundai Motor Group, is tasked with providing double-decker electric trains to ONCF, Morocco's national railway operator, as stated by the Yonhap news agency.
In his correspondence, Choi conveyed his appreciation for the faith and interest shown by the Moroccan government in South Korea's globally competitive and technologically advanced firms, as noted by the finance ministry in an official statement.
The ministry highlighted that the contract with Hyundai Rotem represents the largest railway vehicle deal ever achieved by a South Korean company on foreign soil.
Moreover, it pointed out that this agreement is anticipated to significantly enhance the growth and cooperation of domestic enterprises, with around 90 percent of the train components sourced from approximately 200 local small and medium-sized enterprises.
This deal signifies Hyundai Rotem's inaugural venture into the Moroccan market and establishes a new benchmark as the company's most substantial railway supply agreement.
Previously, Hyundai Rotem's most notable contracts included the Australian NIF double-decker train project, which amounted to 1.4 trillion won, and the Queensland train supply contract in Australia, valued at 1.3 trillion won, along with a 900 billion won contract for the Los Angeles Metro train in preparation for the 2028 Los Angeles Summer Olympics.
The double-decker trains, which can achieve speeds of up to 160 kph, will link Morocco's largest city, Casablanca, with key regions, thereby improving the country’s public transportation framework ahead of co-hosting the 2030 FIFA World Cup.
Some components will be produced locally to aid in the development of Morocco's railway industry.
The maintenance operations for the trains will be conducted collaboratively by Hyundai Rotem and Korea Railroad Corp. (KORAIL) through subsequent discussions.
Hyundai Rotem credited its success to the concerted efforts of various government departments, with particular acknowledgment to the Ministry of Land, Infrastructure and Transport.
