Morocco’s national railway operator, ONCF, has strengthened its industrial partnership with South Korea’s Hyundai Rotem company. The two partners signed on Thursday a $487 million railway maintenance deal, building on a major rolling-stock contract sealed last year between the two parties.
Under the agreement, Hyundai Rotem and ONCF have agreed to set up a joint venture that will provide maintenance services over the next 20 years to the trains that will be supplied to Morocco by the Korean company.
Early last year, the Korean firm agreed to supply 440 double-decker electric train cars to Morocco for $1.4 billion ahead of the 2030 FIFA World Cup, which Morocco will co-host along with Spain and Portugal.
As part of the maintenance contract, Hyundai Rotem will provide replacement parts, technical services, and major overhaul services to ensure the long-term reliability of the Moroccan train fleet.
Hyundai Motor Group said that the Moroccan project would expand its footprint in Africa, one of the world’s fastest-growing rail markets, while helping to modernise Morocco’s railway infrastructure.
“Through this contract with ONCF, we will contribute to the development of the local railway industry and the enhancement of public transportation,” Hyundai Rotem CEO Lee Yong-bae said in a statement.
“We will remain fully committed to the project, from the delivery of the trains to the successful execution of long-term maintenance services,” he added.