Hyundai Rotem, the South Korean rail manufacturer, began final negotiations on Monday with Morocco’s state-owned railway operator, ONCF, for USD 1.6 billion, converging reports state.
The week-long negotiation is part of an international tender to develop a comprehensive railway ecosystem in Morocco, encompassing the purchase of 168 trains and a 20-year maintenance agreement.
The contract has attracted global attention, with Hyundai Rotem contending against industry heavyweights including France’s Alstom, Spain’s Talgo and CAF, and China’s CRRC.
The tender is divided into four sub-lots, each tailored to specific needs: 18 high-speed trains, 40 intercity trains, 60 shuttle trains, and 50 Regional Express Network (RER) trains.
Hyundai Rotem reportedly submitted a comprehensive bid covering all aspects of the tender. The company has been showcasing its KTX trains, which are currently in use by “Korea Railroad Corporation,” at international forums, including the “World Congress on High-Speed Rail” in Marrakech last March.
The company’s KTX models have been touted as technologically advanced solutions that could meet Morocco’s growing demand for efficient and reliable rail transport.
In a push to strengthen its bid, Hyundai Rotem has engaged in high-level diplomatic efforts. In July, the Republic of Korea’s Minister of Land, Infrastructure, and Transport, Sangwoo Park, met with Morocco’s Minister of Transport and Logistics, Mohammed Abdeljalil, to highlight the benefits of Hyundai Rotem’s proposal.
Meanwhile, Hyundai Rotem CEO Lee Yong-Bae held discussions with Morocco’s Minister of Industry and Trade, Ryad Mezzour, where he detailed plans to establish a train manufacturing plant in Morocco.
The facility would not only produce trains locally but also involve significant technology transfer, potentially boosting Morocco’s domestic capabilities in the railway sector.
The ongoing negotiations with ONCF are expected to cover detailed technical, financial, and legal aspects of the contract. The talks will also cover the extensive maintenance agreement, ensuring that the trains remain operational and efficient over the next two decades.
Following the conclusion of these negotiations, ONCF will update its tender specifications based on the discussions and invite final proposals from the selected bidders within a month.
The contract is expected to be awarded by the end of October, with ONCF evaluating offers based on performance and cost-effectiveness.