Morocco, as a developing country, is actively engaged in the modernization of its transport infrastructure, in particular the railway sector. In this context, the European Bank for Reconstruction and Development (EBRD) announces an investment of 38 million EUR to support the country’s rail transition. This investment aims to improve the efficiency, sustainability and safety of the Moroccan railway network, while contributing to the reduction of carbon emissions.
The rail sector in Morocco
Morocco has a 2,200-kilometer railway network, managed mainly by the National Office of Railways (ONCF). This network plays a crucial role in transporting passengers and goods across the country. In 2022, rail transport carried approximately 38 million passengers and 8 million tons of freight, according to data from the ONCF. However, the sector faces a number of challenges, including:
- The poor infrastructure
- The need to improve safety and effectiveness
- The transition to more sustainable modes of transport
EBRD Investment Details
The EBRD’s investment of EUR 38 million will mainly finance projects to modernize the Moroccan railway network. According to the EBRD, this investment will be divided among different priorities.
- Infrastructure improvements: Part of the funding will go towards the renovation of railway tracks, stations and signaling systems. This will increase the capacity of the network and reduce travel times.
- Transition to more sustainable technologies: The investment will support the integration of environmentally friendly technologies, such as electric traction systems and low-carbon trains. This is in line with Morocco’s commitment to reduce its greenhouse gas emissions by 42% by 2030, in line with its COP22 commitments.
- Increased safety: Part of the funds will also be used to improve the safety of railway operations, including through the installation of advanced monitoring and control systems.
Morocco is one of the EBRD’s founding countries and has been one of its economic beneficiaries since 2012. The bank has invested more than 5.2 billion EUR in 110 projects in the North African country since the start of its operations.
Potential impact on the railway sector
Increased capacity and efficiency
One of the key benefits of this investment is increased capacity and efficiency of the rail system. By modernizing infrastructure, Morocco will be able to transport more passengers and goods. According to ONCF forecasts, improved infrastructure could increase the volume of passengers transported by 20% in 2025.
Reducing carbon emissions
The transition to more sustainable technologies will have a significant impact on the environment. The rail sector is already one of the most environmentally friendly modes of transport, with CO2 emissions per passenger-kilometer well below those of cars and airplanes. With the integration of electric traction systems and low-emission trains, Morocco could reduce its rail carbon emissions by 30% by 2030.
Job creation
The EBRD’s investment in the railway sector is also expected to have a positive impact on employment. The modernization of infrastructure and the integration of new technologies require technical and professional skills. It is estimated that around 1,500 direct jobs could be created through these projects, not counting the indirect jobs generated by the increase in Moroccan economic activity linked to rail transport.
Implications for the Moroccan Economy
Stimulating economic growth
The development of the rail sector is essential to boost Morocco’s economic growth. A modern and efficient rail network facilitates the transport of goods, thus reducing logistical costs for businesses. According to a World Bank study, improving transport infrastructure could increase Morocco’s GDP by 1.5% to 2% per year.
Strengthening regional integration
Morocco is also seeking to strengthen its regional integration through the development of its rail network. By modernizing its infrastructure, the country will be better able to connect its ports to African and European markets. It could also facilitate intra-African trade, which currently accounts for only 15% of the continent’s trade, according to the African Union.
Improving competitiveness
A modernized railway sector will help improve Morocco’s international competitiveness. By facilitating the movement of goods and people, the country will be able to attract more foreign investment. According to the 2022 report of the United Nations Industrial Development Organization (UNIDO), Morocco attracted about 1.5 billion USD in foreign investment in the transport sector in 2022, a figure that could increase with improvements in rail infrastructure.
Challenges ahead
Despite the potential benefits of this investment, several challenges need to be overcome to ensure the success of the rail transition in Morocco.
Project funding and management
The implementation of railway infrastructure projects requires adequate funding and effective management. While the EBRD’s investment is a step in the right direction, other sources of finance will be needed to complement these efforts. Morocco will also need to ensure that projects are managed transparently and efficiently to avoid delays and cost overruns.
Integration of new technologies
The integration of new technologies in the rail sector can also pose challenges. Morocco will need to train its staff in the new technical skills needed to operate and maintain modern systems. This will require investment in training and skills development.
Coordination with other modes of transport
To maximize the benefits of the modernization of the rail sector, Morocco will need to coordinate its efforts with other modes of transport, such as road and sea transport. An integrated approach to transportation will optimize supply chains and reduce logistics costs.
