Morocco's Railway System Unveils $939 Million Expansion Plan Through 2027

Morocco's National Railways Office (ONCF) has announced an ambitious MAD 9.78 billion ($939 million) investment strategy spanning 2025-2027, marking a significant advancement in the country's transportation infrastructure. The comprehensive plan, detailed in the public establishments and enterprises report accompanying the 2025 draft Finance Bill, aims to modernize and expand Morocco's rail network while driving substantial revenue growth.

The investment will be distributed across three years: MAD 2.97 billion ($290 million) in 2025, MAD 3.64 billion ($355 million) in 2026, and MAD 3.17 billion ($310 million) in 2027. These funds will support critical initiatives including new rolling stock acquisition, maintenance workshop construction, and infrastructure improvements.

ONCF's financial projections show an upward trajectory, with anticipated revenues of MAD 5.13 billion ($501 million) in 2025, rising to MAD 5.55 billion ($542 million) in 2026, and reaching MAD 6.05 billion ($591 million) by 2027.

This investment program operates independently from Morocco's larger rail development strategy for the 2030 World Cup, which carries an estimated cost of MAD 87 billion ($8.5 billion). The broader initiative encompasses extending the high-speed rail line from Kenitra to Marrakech and developing regional express networks in major metropolitan areas including Casablanca, Rabat, and Marrakech.

Recent performance indicators demonstrate ONCF's strong growth trajectory. The railway transported 53 million passengers in 2023, representing a 15% increase from 2022 with over 7 million additional passengers. The Al Boraq high-speed service experienced particularly robust growth, carrying 5.2 million passengers in 2023 - a 25% increase from the previous year. Looking ahead, ONCF targets a 4% passenger growth for 2024, aiming to exceed 55 million travelers.

Freight operations remain substantial, with ONCF handling over 17 million tons of goods in 2023, half of which consisted of phosphate transport. The company's financial performance reflects this operational success, generating MAD 4.35 billion ($425 million) in revenue for 2023, with consolidated revenue reaching MAD 4.9 billion ($479 million) - a 7% increase from 2022.

The first half of 2024 has already shown promising results, with revenues increasing by 12% to MAD 2.18 billion ($213 million), or MAD 2.55 billion ($249 million) on a consolidated basis. Year-end projections for 2024 anticipate revenue of MAD 4.69 billion ($458 million), or MAD 5.63 billion ($549 million) consolidated, representing significant growth from 2023.

Despite these ambitious expansion plans, ONCF maintains careful management of its debt, which stood at MAD 42.5 billion ($4.15 billion) at the end of 2023, showing a slight 2% decrease due to favorable exchange rates. Projections for 2024 indicate a minimal 0.3% increase to MAD 42.638 billion ($4.17 billion).

This comprehensive investment strategy aligns with Morocco's broader economic vision outlined in the 2025 Finance Bill, which emphasizes social cohesion, economic sovereignty, sustainable public finances, and future generation development, while maintaining crucial social protection programs.