Al Boraq's Economic Model Fuels Expansion of High-Speed Rail in Morocco
The Moroccan Minister of Transport and Logistics, Abdel Samad Qiyuh, has affirmed that the integrated economic and developmental model of the 'Al Boraq' high-speed train serves as a significant lever for financing the expansion of the high-speed rail network in Morocco. He highlighted that studies have demonstrated the viability of the investments made in this project. Beyond the commercial revenues that cover operational costs and generate a surplus contributing to infrastructure financing, the positive impacts on the local economic fabric and the enhancement of tax resources indicate the project's capacity to sustain its costs while delivering high added value to the national economy.
Three Pillars of Economic Sustainability
In a recent written response to a parliamentary inquiry regarding the financial sustainability of the 'Al Boraq' high-speed train, Minister Qiyuh emphasized that the economic and developmental model of the train is anchored on three key pillars: cost control, flexible pricing policies, and mobilization of sustainable financing. The National Railway Office adopts a cost structure based on national competencies and local contractors, allowing it to benefit from favorable economic conditions compared to international standards. This approach not only reduces maintenance costs but also fosters the transfer of skills and technical knowledge, thereby enhancing management and operational value. Furthermore, the commitments to clean energy options contribute to cost efficiency and bolster the environmental aspect of the project.
Qiyuh further noted that the office's pricing policies take into account the purchasing power of travelers, which helps increase train occupancy rates and improve overall profitability. The office is also focused on maximizing the economic and environmental impacts of the project to secure favorable funding conditions from both national and international financial institutions. This strategy reflects the project's attractiveness and its ability to balance economic performance with social and environmental responsibility.
Additionally, the minister reminded that 'Al Boraq', which is the first high-speed train in Africa and the Arab world, stands as one of Morocco's most significant structural projects in modern rail infrastructure. The ambitious project aligns with the royal vision aimed at enhancing connectivity between major urban centers, facilitating the movement of people and goods, and contributing to integrated and sustainable national development.
On the financial side, the revenues generated by the 'Al Boraq' have seen remarkable growth, with figures rising from 407 million dirhams in 2019 to 780 million dirhams in 2024, marking a staggering increase of 92 percent. According to the data provided by the transport minister, these revenues account for approximately 28 percent of the total passenger transport activity, underscoring the growing significance of high-speed rail. This revenue stream significantly contributes to the financial balance of the office, allowing it to cover various operational expenses while also funding part of the investments directed towards essential infrastructure.
Minister Qiyuh also mentioned that gross operating revenue has surged by 95 percent, increasing from 995 million dirhams in 2019 to 1.949 billion dirhams in 2024, further highlighting the positive trajectory of the high-speed rail project and its crucial role in Morocco's economic landscape.
As reported by hespress.com.
