Hyundai Rotem Secures EUR 487M Morocco Maintenance Contract

RABAT, Morocco – Hyundai Rotem and Morocco’s national railway operator ONCF formalized a 20-year fleet maintenance agreement valued at EUR 487 million in Rabat. The contract covers the entire fleet of 440 double-decker electric railcars ordered under a previous EUR 1.3 billion supply deal signed in February. CEO Lee Yong-bae and ONCF Director General Mohamed Rabie Khlie attended the signing ceremony.

What Does This Contract Cover?

The contract covers full maintenance services for 440 double-decker electric trains over two decades, including spare parts supply, heavy maintenance, technical inspections, repair and replacement of safety‑critical components, and operation of a technical support centre. Hyundai Rotem will source parts in collaboration with over 200 South Korean small and medium‑sized enterprises, a move the company says will support railway industry development in both Korea and Morocco. The agreement is linked to the earlier EUR 1.3 billion supply contract for the same fleet, which will serve corridors connecting Casablanca and other major cities as Morocco expands its network ahead of the 2030 FIFA World Cup.

Key Contract Data

How Does This Compare to Similar Contracts?

Industry data indicates that average railway sector contract values stood at around EUR 1.3 billion in 2024, easing to approximately EUR 1.25 billion in 2025. Hyundai Rotem’s EUR 487 million maintenance‑only agreement sits below typical supply contract benchmarks but represents the largest international maintenance deal signed by the company to date. The linked train supply contract, at EUR 1.3 billion, aligns closely with the 2024 average. Separately, a EUR 1.2 billion finance contract for the overall programme appears in related data, though the primary source does not detail the financing structure. (Source: Railway sector contract benchmarks, 2025; comparison data reviewed by this publication)

Note: Independent verification of the EUR 1.2 billion finance contract and the contractual delivery timeline was not available at time of publication.

Editor’s Analysis

Bundling the supply of 440 trains with a two‑decade maintenance lock‑in gives Hyundai Rotem a long‑term revenue stream in a market that is rapidly modernising its rail backbone ahead of the 2030 World Cup. Morocco’s infrastructure push, including a reported $17.1 billion allocation to advanced technology and defence‑industrial joint ventures (Source: Jerusalem Post, 2026), suggests ONCF now prioritises reliability and lifecycle support alongside fleet acquisition. The requirement to involve over 200 Korean SMEs may also serve as a template for localisation efforts as ONCF pursues its Vision 2040 goal of becoming a regional transport hub.

FAQ

Q: What is the combined value of Hyundai Rotem’s two ONCF contracts?
A: The supply contract is worth EUR 1.3 billion, and the maintenance agreement is EUR 487 million, giving a combined total of approximately EUR 1.8 billion.

Q: When will the new electric trains enter service?
A: ONCF and Hyundai Rotem have not publicly disclosed a delivery or commissioning date. The maintenance contract is tied to the fleet’s operational start, but that timeline remains unspecified.

Q: How will this contract impact local industry in Morocco and Korea?
A: Hyundai Rotem will source spare parts from over 200 South Korean small and medium‑sized enterprises, which the company says will contribute to railway industry development in both countries. Specific local Moroccan content requirements were not detailed.