Morocco a country located directly across the Strait of Gibraltar from Spain, also known as “The farthest land of the setting sun.” The country is the only remaining monarchy in Northern Africa. The largest city – Casablanca – is also an industrial and commercial center, housing its major Atlantic Ocean port. The capital – Rabat, is a short distance to the north on the Atlantic coast.
Other port cities include Tangier, on the Strait of Gibraltar, Agadir, on the Atlantic, Al-Hoceïma, on the Mediterranean Sea and Kenitra. The country covers an area of 446,550 square kilometers and has a population of 34.8 million as of 2017. Over the last few years, Morocco has been pushing to be a hub of international development. The North African nation is making strides to transform itself and is following in the footsteps of economic powerhouses such as China and France to build an inter-city high speed rail link (TGV). Not having hydrocarbon resources like its Arab world neighbors has placed the country in eight place in the World Economic Forum’s recent Global Competitiveness Index for 2017-2018, among Arab nations. Despite this, Morocco has been working hard to build on and increase its economic influence. Endeavors to open up the country’s economy have led to efficient and competitive commodity markets, policies directing trade and industry aimed at expanding international integration have ultimately led to lower average import tariffs, reflecting a decrease of 8.4% - from 18.9% to 10.5% in a span of a decade. High Speed Train In correspondence
In correspondence to a wider trend across the Arab World, Morocco has also made significant investments into infrastructure. In 2005, a national plan was drawn up for high-speed lines. Inherited from the colonial era, there have been some upgrades to the rail network since the 1980’s. Following the upgrades, passenger traffic and mobility growth was high – increasing from 14.7 million passengers in 2002 to 40 million in 2015. Understanding the importance of transforming the country’s aged rail network, which came into service in the 1960’s, and which has been transporting passengers along the coast line between Tangiers and Casablanca – Morocco’s two main cities, Abu Dhabi Fund for Development (ADFD) provided the country with a loan worth AED 514 million for the construction of the high speed train network.
The Abu Dhabi Fund for Development’s efforts towards social and economic development for Morocco began in 1976. Morocco has been a strong focus of the ADFD, having received a total of AED 9 billion in total grants and loans. The fund has provided financial assistance for 81 projects in various segments of sectors; Agriculture, Electricity & Water, Social & Health services, Housing, Industrial, Transportation and others. Among these projects is the aforementioned TGV, which will play a pivotal role in supporting economic and social development. Through linking the two cities, this important 200km long, 320 km/h infrastructure project will enable swifter movement of people, in turn increasing nationwide and cross-city trade and tourism as well as driving sustainable economic development, as stated under the United Nations sustainable development goals (SDG); decent work and economic growth (SDG 8), industry, innovation and infrastructure (SDG 9) and sustainable cities and communities (SDG 11).
Full Speed Ahead
A new age of rail travel will make its mark on Morocco with the inauguration of the new inter-city TGV, the first high-speed train link on the African continent. Built by an international company and several Moroccan engineering firms, the new infrastructure will more than halve the four hour and forty-five-minute journey time from Tangiers to the industrial hub of Casablanca. The Tangier-Kenitra line will run at a top speed of 320km per hour. However, the rest of the Kenitra-Rabat -Casablanca route will take a third lane that will allow the rail to run at 180km per hour against 160km per hour for conventional trains pending the construction of an additional track, which will be ready by 2020. The 12 new trains will cover the 354-mile journey in just over two hours, each train comprises eight cars, including a catering carriage, and will able to hold more 533 passengers. Mohamed Rabie Khlie, CEO of Moroccan National Railway, noted that the TGV will directly employ 1,500 workers and indirectly employ 3,000 who will continue working in Morocco’s national railway service. The goal of this new infrastructure network is to act as a catalyst for increased welfare and business opportunities within the country. Together with the ongoing economic and social reforms, infrastructure investments will bring much-needed economic prowess to the region.
Connecting Growth
The Tangiers-Casablanca route is expected to generate a sharp increase in passenger numbers that will boost tourism, support wider economic growth in the cities, and recoup the investment on it. Moroccan officials have the perception that the new infrastructure will transport an estimated 6 million passengers in its first 3 years, which amounts to 5,480 passengers per day. To manage this level of traffic, there will be hourly departing trains and the LGV expects to maintain an average 70% occupancy. The country aims to provide accessibility to the train for all citizens at affordable rates, not branding it as a luxury service. Economic expert El Mehdi Fakir said the high-speed train would have a tremendous added value on Morocco’s economy because it links the country’s most important economic engines. Office National des Chemins de Fer (ONCF) - Morocco’s national railway operator, noted that the new project will play a major role in boosting economic activity in Tanger-Med, with the example of PSA – French automobile manufacturer – moving to Kenitra after the conglomerate was given guarantees by the Moroccan government that vehicles produced would be able to be transported to Tanger-Med port. A reputable brand such as PSA was succeeded by Renault in starting operations in Morocco, this will surely ignite confidence in other major international players to consider Morocco as a hub for their operations.
The high speed train project will naturally also be capable of transporting large goods (LGV), based off this, PSA’s Kenitra plant is aiming to double its annual production capacity in 2020 – further promoting economic growth in the area. The LGV aspect of the project positions the hubs it connects as major employment areas by acting as an enabler for foreign companies to set up in said areas. In addition to this, the knowledge and expertise gained from this mega-project by the Moroccan firms involved will greatly benefit the country as the acquired skills can be implemented not only in other projects within the country, but also projects in the rest of the continent in the future.
Tourism Prospects
High-speed rail services are also used worldwide for tourism related mobility. Morocco’s “Prospective Maroc 2030” long term plans and “Vision 2020” development strategy aim to continue prioritizing tourism as one of the drivers of the socio-economic and cultural development. The tourism 2020 vision aims to double Morocco’s visitors, forex earnings and accommodation capacity. In the first half of 2018, the country welcomed an estimated 5.1 million visitors, an increase of 10% from the same period a year earlier, according to Morocco’s Tourism Observatory. With this view, high speed rail services can be used by tourists for certain destinations within Morocco. Additional segments will be floated for bids in the coming years. By 2030, the national rail company National des Chemins de Fer (ONCF) will issue tenders to connect Tangier to Agadir via Rabat, Casablanca, Marrakech, and Essaouira, then Casablanca to Oujda via Meknes and Fez. High speed rail services can also be used for domestic tourism. The Moroccan administration aims to develop this type of tourism to of triple the number of domestic travelers. Overnight stays in hotels have grown by 11% to represent 32% of the total, a larger percentage than those of the French market (20%). It is thus not just the wealthiest Moroccan categories, but also those within the middle classes who are able to benefit from tourism activities, that are liable to travel by the-speed train.