SGTM Wins $200 Million Final Contract for Kenitra-Marrakech High-Speed Rail Project

Doha – Morocco’s National Railways Office (ONCF) has awarded the eighth and final lot of civil engineering works for the Kenitra-Marrakech high-speed rail line (LGV) to the Société Générale des Travaux du Maroc (SGTM), with a contract value of MAD 2 billion ($200 million).

According to converging media reports, SGTM’s bid was deemed the most competitive and compliant, coming in below ONCF’s initial estimate of MAD 2.1 billion ($210 million) and outbidding competitors including the SNCE-CAPEP-SEPROB consortium, China’s CCECC, and the GPRT NGE Contracting-Guintoli partnership.

The contract encompasses earthwork operations and engineering structures in the Bouregreg Valley region.

SGTM joins four other Moroccan companies that have secured contracts for the LGV project, including TGCC (MAD 2.83 billion/$283 million), Jet Contractors (MAD 2 billion/$200 million), Mojazine Group (MAD 1.97 billion/$197 million), and STAM (MAD 2.4 billion/$240 million).

Chinese companies have also won significant portions of the project, with contracts awarded to Gezhouba (MAD 2.32 billion/$232 million), CRCC 20 (MAD 2.83 billion/$283 million), China Railway No.04 Engineering (MAD 3.4 billion/$340 million), Shandong Hi-Speed Engineering-Construction (MAD 4.5 billion/$450 million), and Covec (MAD 1.3 billion/$130 million).

French company GTR, a Colas subsidiary, secured a contract worth MAD 2.2 billion ($220 million).

The comprehensive project includes the construction of a dedicated high-speed line between Kenitra and Marrakech, connections to existing lines, station upgrades, modernization of the conventional Kenitra-Rabat-Casablanca-Marrakech line, terminal facilities, and maintenance bases.

The route will connect Kenitra’s maintenance base to Rabat’s northern tunnel, continue between Aïn Atiq and Zenata, and proceed to Marrakech via the new Nouaceur hub, which will also serve as a connection point for Casablanca’s Mohammed V International Airport.

The 430-kilometer project, estimated at MAD 53 billion ($5.3 billion), is part of ONCF’s larger MAD 87 billion ($8.7 billion) railway development program, which aims to prepare for the 2030 World Cup.

The African Development Bank recently announced $14 billion in investments for ONCF’s rail projects, exceeding the initial funding request of $8.8 billion.

Upon completion, the high-speed rail service will reduce travel time between Tangier and Marrakech to 2 hours and 45 minutes by 2029, down from the current 7 hours.

ONCF reported transporting 52.8 million passengers in 2023, including 5 million on the existing high-speed line, along with 17 million tonnes of freight.

The network currently spans 2,309 kilometers, including 200 kilometers of high-speed lines, with 64% of the network electrified.

The project also includes plans for future expansion, with potential extensions from Marrakech to Agadir and further developments toward the southern regions of Laayoune and Dakhla.

Additionally, ONCF has announced plans to acquire 168 new trains to modernize its fleet and accommodate growing passenger demand.