The Economic Model of Al Boraq and Its Impact on Infrastructure Expansion
Abdel Samad Qiyouh, the Moroccan Minister of Transport and Logistics, recently emphasized that the integrated economic and developmental model of the "Al Boraq" train serves as an effective catalyst for financing the expansion of the high-speed rail network. He noted that studies have confirmed the viability of the investments made in this project. The commercial revenues derived from the train not only cover operational costs but also generate a surplus that contributes to infrastructure funding. Moreover, the positive economic impacts observed at the local level and the enhancement of tax resources confirm the project's capability to bear its costs while delivering substantial added value to the national economy.
In a recent written response concerning the financial sustainability of the high-speed train, Qiyouh reassured that the National Office of Railways is committed to meeting all its financial obligations towards various partners, including suppliers, banking institutions, and public administrations, all within a framework of financial discipline and good governance.
Key Pillars of the Economic Model
In addressing the parliamentary inquiry raised by Khalid Al Satti, Qiyouh highlighted that the economic and developmental model of the "Al Boraq" train rests on three principal pillars: cost control, flexible pricing policies, and mobilization of sustainable financing. The rail office relies on a cost structure based on local competencies and national services, enabling it to benefit from preferential economic conditions compared to international standards. This approach not only reduces maintenance costs but also fosters the transfer of skills and technical knowledge, thereby achieving added value in management and operations. Additionally, the adoption of clean energy options contributes to cost rationalization and enhances the environmental aspect of the project.
Qiyouh further noted that the office employs pricing strategies that take into account passengers' purchasing power, which contributes to increasing train occupancy rates and improving profitability. The office also works on maximizing both the economic and environmental impacts of the project to mobilize financing under favorable conditions from national and international funding institutions, benefiting from extended repayment terms and easier financing. This strategy reflects the project's attractiveness and its ability to balance economic performance with social and environmental responsibility.
As the first high-speed train in Africa and the Arab world, "Al Boraq" is regarded as one of Morocco's most significant structural projects in modern rail infrastructure. It 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.
Qiyouh concluded that the "TGV" line is a fundamental pillar in the National Office of Railways' strategy to enhance the quality of services offered to passengers, develop trains and infrastructure, ensure environmental sustainability, and promote digital transformation. This project serves as a benchmark in technological empowerment, knowledge transfer, and the development of national competencies, positioning Morocco as a regional hub for innovation and investment in sustainable infrastructure. Financially, the revenues from the "Al Boraq" train have shown significant growth, advancing from 407 million dirhams in 2019 to 780 million dirhams in 2024—a remarkable increase of 92 percent. These revenues represent approximately 28 percent of the total turnover from passenger transport activities, highlighting the increasing importance of the high-speed train in reinforcing the financial balance of the office, enabling it to cover various operational costs and contribute to funding essential infrastructure investments.
Furthermore, Minister Qiyouh reminded that the gross operating income has risen by 95 percent, from 995 million dirhams in 2019 to 1.949 billion dirhams in 2024, showcasing the project’s financial success and its critical role in Morocco's railway development.
As reported by hespress.com.
