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SGTM tapped for railway project: The Moroccan National Railway Authority (ONCF) awarded Morocco’s civil engineering firm SGTM a MAD 2 bn (USD 200 mn) contract for for the high-speed line (LGV) from Kenitra to Marrakech, Morocco World News reported last week. The contract will cover extensive civil work, including earthworks and engineering structures in the Bouregreg Valley region.
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SGTM’s bid outran other bidding competitors, including Morocco’s SNCE/Capep/Seprob consortium, the GPRT NGE Contracting-Guintoli partnership, and China’s CCECC.
SGTM is joining other firms that secured contracts for the LGV project, which includes leading Morocco firms such as, TGCC at a MAD 2.83 bn, Jet Contractors at MAD 2 bn, Mojazine Group at MAD 1.97 bn, and STAM at 2.4 bn. The project also features other Chinese investors, including Gezhouba at MAD 2.32 bn, CRCC 20 at MAD 2.83 bn, China Railway at MAD 3.4 bn, Shandong Hi-Speed Engineering-Construction at MAD 4.5 bn, and Covec at MAD 1.34 bn.
Background: ONCF rolled out a MAD 9.78 bn (c. USD 988.3 mn) railway development investment plan back in October for 2025-2027, which includes extending the high-speed rail line (LGV) from Kenitra to Marrakech as well as establish a regional express network (RER) for Casablanca, Rabat, and Marrakech.
Eyes on the prize: African Development Bank (AfDB) said it attracted over USD 13 bn worth of financial commitments from investors for the project back in December, exceeding the initial USD 8.8 bn it was seeking. ONCF handled some 17 mn tonnes of freight in 2023 and transported 52.8 mn passengers, including 5 mn on the already-existing LGV railway.
Future expansion plans: The project aims to add potential extensions from Marrakech to Agadir and further developments to the Laayoune and Dakhla regions. ONCF also has plans to acquire 168 new trains to modernize its fleet to meet the rising passenger demand. Morocco also rolled out its Railway Strategy 2040, a comprehensive long-term plan for the development of the national railway network, expected to cost MAD 87 bn (c. USD 8.5 bn). ONCF also aims to expand its network to serve 43 — or 87% — of Morocco by 2040.
Morocco’s been making moves: ONCF awarded a contract back in November to a consortium of Spanish engineering firm Ineco and Morocco’s CID to carry out the preliminary project for the railway service between the Moroccan cities of Oued Zem and Beni Mella, as well as
