Morocco to launch $2.5 bln high-speed train line

Morocco will start building a high-speed railway linking Tangier to its commercial capital Casablanca, the Transport Ministry said on Monday.

High-speed trains, like this Alstom TGV, will be used on the new railway between Casablanca and Tangiers
"The work to build the high-speed train line between Tangier and Casablanca will be launched this year and the line service would begin in December 2015," it said.

The train project is part of a huge railway upgrade scheme stretching over six years and beginning this year, the ministry said.

"The high-speed train project would cost 20 billion dirhams (US$2.47 billion), of which half will go for the line infrastructure and 5.6 billion for railway equipment while the remaining 4.4 billion will be spent in the rolling stock," it added.

The ministry did not say from which foreign firms it would buy the trains and other equipment needed to build and service the planned line.

Industry sources in Rabat said they believed that French railway operator SNCF, heavy engineering group Alstom SA and Bombardier Inc were among the foreign companies vying for part or all of the project.

The Transport Ministry said the Tangier-Casablanca project is part of a large plan to expand and upgrade the country's railway infrastructure at a total cost of 33 billion drihams.

Government officials said the railway project dovetailed a government effort to bolster economic growth and fight the impact of the global economic slowdown.

The government plans to expand investment spending 20.4 percent this year to spur economic growth of 3.5 percent and offset the impact of the downturn in its main trade partners, mostly in Europe, the officials added.

The government estimates the economy grew by more than 5 percent last year, almost the same rate as the previous year, as the country garnered its largest cereals crop in 50 years.

The farming sector accounts for up to 17 percent of Morocco's gross domestic product and is the main employer.

Early last month, the state forecasting High Planning Commission had said it expected the cereals harvest to fall to at least 7 million tonnes this year from 10.2 million tonnes in the previous crop.