Al Boraq's Economic Model Supports Infrastructure Growth
In a recent statement, Abdel Samad Qiyouh, Morocco's Minister of Transport and Logistics, highlighted that the integrated economic and development model of the "Al Boraq" train serves as a significant driver for funding the expansion of the high-speed rail network in the country. He pointed out that studies have demonstrated the viability of the investments made in this sector. The commercial revenues generated not only cover operational costs but also yield a surplus that contributes to infrastructure funding. Furthermore, the positive impacts observed on the local economic fabric and the enhancement of tax resources affirm the project’s ability to sustain its costs while providing high added value to the national economy.
Financial Sustainability and Growth Strategy
In response to questions regarding the financial sustainability of the high-speed train, Qiyouh indicated that the National Railway Office is committed to fulfilling all its financial obligations to various partners, including suppliers, banks, and public administrations, emphasizing the importance of financial discipline and good governance in operations. He elaborated that all revenues, expenses, and tax obligations related to the high-speed train are integrated into the financial transactions of the National Railway Office, ensuring a sound tax status that aligns with other activities of the office.
The Minister also emphasized that the economic and development model of the "Al Boraq" train is built on three main pillars: cost control, flexible pricing policies, and the mobilization of sustainable financing. The railway office utilizes a cost structure based on local competencies and services, allowing it to benefit from preferential economic conditions compared to international standards. This approach not only reduces maintenance costs but also enhances the transfer of skills and technical knowledge while promoting environmental sustainability through clean energy options.
Qiyouh also noted the importance of pricing policies that consider passengers' purchasing power, aiming to increase train occupancy rates and improve profitability. The office aims to maximize the economic and environmental impacts of the project to secure favorable financing from national and international funding institutions, reflecting the appeal of the project and its capacity to balance economic performance with social and environmental responsibility.
As the first high-speed train in Africa and the Arab world, "Al Boraq" is recognized as one of Morocco's flagship infrastructure projects, aligning with the royal vision to enhance connectivity between major urban centers, facilitate the movement of people and goods, and contribute to sustainable and integrated national development. The integration of the "Al Boraq" line into the National Railway Office's strategy for improving service quality, infrastructure development, and environmental sustainability is critical.
Financially, revenues from the "Al Boraq" train have seen remarkable growth, transitioning from 407 million dirhams in 2019 to 780 million dirhams in 2024, equating to an impressive increase of 92%. These revenues represent approximately 28% of the total passenger transport turnover, underscoring the growing significance of the high-speed train in enhancing the financial equilibrium of the railway office. This growth enables the office to cover its operational costs and contributes to financing essential infrastructure investments.
Qiyouh also reported that the gross operating profit surged by 95%, rising from 995 million dirhams in 2019 to 1.949 billion dirhams in 2024, reflecting the substantial impact of the "Al Boraq" train on the overall railway sector and its pivotal role in Morocco's transportation infrastructure.
As reported by hespress.com.
