Hyundai Rotem Secures Record-Breaking W2.2 Trillion Train Contract with Morocco

Hyundai Rotem has finalized a historic 2.2 trillion won ($1.5 billion) train order with Morocco, its largest ever. This agreement involves supplying double-decker trains to enhance public transportation in preparation for the 2030 World Cup. The local production aspect will support the Moroccan railway industry and create opportunities for smaller Korean suppliers. This partnership signifies a strategic entry into the African market for Hyundai Rotem.

Hyundai Rotem has secured a record-breaking train order valued at 2.2 trillion won (approximately $1.5 billion) with Morocco, marking the largest deal in the company’s history. On Tuesday, the company finalized this contract with the Moroccan National Railways Office to deliver double-decker trains designed to enhance regional transportation. These trains will operate at speeds of up to 160 kilometers per hour, connecting Casablanca, Morocco’s largest city, with essential areas as the nation prepares to co-host the 2030 World Cup with Spain and Portugal.

As part of the contract, some production will occur in Morocco, fostering the growth of the local railway industry. Hyundai Rotem will collaborate with the Korea Railroad Corporation (Korail) to provide maintenance and repair services for the trains, which will be discussed in further negotiations with Moroccan authorities. The agreement is anticipated to benefit smaller Korean companies, with around 90 percent of the train components sourced from domestic small to medium-sized enterprises.

This partnership signifies Hyundai Rotem’s inaugural entry into the Moroccan railway market, aided by effective collaboration between public and private sectors, including the Ministry of Land, Infrastructure and Transport and Korail, in competing against European bidders. Notably, Transport Minister Park Sang-woo visited Morocco last year to bolster the appeal of Korea’s railway technology. Hyundai Rotem credits the Moroccan government’s positive reception to Korail’s commitment to technology transfer and training initiatives.

With this contract, Hyundai Rotem enhances its position within the African transportation market, building on previous collaboration with Korean partners in countries such as Tunisia, Tanzania, and Egypt. The company has also established significant contracts in other regions, including Australia and the United States, demonstrating its international reach.

A representative of Hyundai Rotem commented, “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. 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 recent contract with Morocco represents a significant milestone, showcasing the company’s capabilities and fostering local development in the railway sector. The collaboration with Korean partners and the commitment to enhancing local infrastructure affirm the strategic importance of this deal in the context of the forthcoming World Cup. Ultimately, this record-setting order symbolizes a robust entry into the African market and emphasizes the competitiveness of Korean railway technology on a global scale.

Original Source: www.koreaherald.com