Hyundai Rotem has secured a major railway maintenance contract in Morocco valued at 748.2 billion won ($487.3 million), further strengthening its presence in the North African country's rail sector.
The agreement builds on a significant train supply deal that the company signed with Morocco earlier and highlights the growing cooperation between the two sides in modernizing the nation's transportation infrastructure.
The South Korean rail and defense equipment manufacturer, which operates under Hyundai Motor Group, signed the contract with Morocco's national railway operator, ONCF, in Rabat on Thursday local time.
The new project focuses on the long-term maintenance and servicing of trains that Hyundai Rotem will supply to Morocco as part of an earlier procurement agreement.
Under the terms of the contract, Hyundai Rotem and ONCF will establish a joint venture that will oversee maintenance operations for all 440 train cars being delivered by the company.
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The maintenance program will run for 20 years, ensuring the reliability, safety, and efficiency of the rail fleet throughout its operational life. The long-term nature of the agreement provides Hyundai Rotem with a stable revenue stream while supporting Morocco's efforts to enhance its railway network.
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The maintenance contract follows Hyundai Rotem's landmark 2.23 trillion-won train supply deal secured in February last year. That agreement involves the delivery of double-decker electric trains designed to improve passenger capacity and service quality across Morocco's expanding rail system.
The new trains are expected to operate on key routes connecting major cities, particularly around Casablanca, Morocco's largest urban and economic hub.
The investment comes as the country accelerates infrastructure development ahead of co-hosting the 2030 FIFA World Cup alongside Spain and Portugal. Improved rail connectivity is expected to play a crucial role in transporting residents and international visitors during the tournament.
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The latest agreement underscores Hyundai Rotem's growing international rail business and Morocco's commitment to modernizing its transportation infrastructure through strategic global partnerships.