Assahafa.com
Morocco’s National Railways Office (ONCF) has outlined a MAD 9.78 billion ($939 million) investment plan for the 2025-2027 period, as detailed in the public establishments and enterprises (EEP) report that accompanies the 2025 draft Finance Bill.
The program allocates MAD 2.97 billion ($290 million) for 2025, MAD 3.64 billion ($355 million) for 2026, and MAD 3.17 billion ($310 million) for 2027, focusing on the acquisition of new rolling stock, construction of maintenance workshops, and infrastructure upkeep.
For the 2025-2027 period, ONCF projects steady revenue increases, with forecasts of MAD 5.13 billion ($501 million) in 2025, MAD 5.55 billion ($542 million) in 2026, and MAD 6.05 billion ($591 million) in 2027.
This investment is separate from Morocco’s rail development strategy linked to preparations for the 2030 World Cup, which is projected to cost MAD 87 billion ($8.5 billion).
The broader plan includes extending the high-speed rail line (LGV) from Kenitra to Marrakech and establishing a regional express network (RER) for the Casablanca, Rabat, and Marrakech metropolitan areas. The railway company noted that discussions are expected to finalize a state-ONCF contract outlining the development plan and its financing framework.
The report notes that ONCF invested over MAD 1.13 billion ($110 million) in 2023, with MAD 811 million ($79 million) added during the first half of 2024. The “Passenger” activity saw growth in 2023, with more than 7 million additional passengers compared to 2022, a 15% increase.
Al Boraq trains carried 5.2 million passengers in their fifth year of operation, a 25% rise from 2022. In total, ONCF transported 53 million passengers in 2023 and is targeting a 4% increase in 2024, aiming for over 55 million passengers.
On the freight side, ONCF moved over 17 million tons of goods in 2023, with phosphate making up 50% of that volume. The company generated MAD 4.35 billion ($425 million) in revenue in 2023, and MAD 4.9 billion ($479 million) consolidated, a 7% rise from 2022, driven by growth in passenger transport.
As of June 2024, revenues had risen by 12% to MAD 2.18 billion ($213 million), or 16% to MAD 2.55 billion ($249 million) consolidated.
Year-end projections expect revenue to reach MAD 4.69 billion ($458 million), or MAD 5.63 billion ($549 million) consolidated, reflecting an 8% increase (15% consolidated) from 2023. ONCF reports this is largely due to anticipated passenger transport growth.
By the end of June, investments amounted to MAD 811 million ($79 million), reflecting a 21% completion rate. The year-end investment forecast for 2024 is MAD 1.243 billion ($121 million), representing 33% of the annual target of MAD 3.808 billion ($371 million).
In terms of debt, ONCF reported MAD 42.5 billion ($4.15 billion) by the end of 2023 – a slight 2% decrease due to favorable exchange rate fluctuations. Projections for the end of 2024 expect a small increase of 0.3%, bringing total debt to MAD 42.638 billion ($4.17 billion).
Morocco’s 2025 Finance Bill focuses on four priorities: strengthening social cohesion, boosting economic sovereignty, ensuring sustainable public finances, and laying the ground for future generations. It also continues social protection programs, including direct aid for nearly four million households.
Source: Morocco word news
