EBRD invests up to €65M to support Moroccan port expansion, sustainability

December 16, 2024, by Naida Hakirevic Prevljak

The European Bank for Reconstruction and Development (EBRD) has decided to invest in Morocco’s maritime sector with a loan of up to MAD 690 million (equivalent to €65 million) to local port operator Marsa Maroc.

As informed, the EBRD loan will finance increases in the capacity of the multipurpose terminals at the ports of Casablanca and Jorf Lasfar, helping to fund infrastructure work aimed at extending their handling capacity, as well as supporting the acquisition of hybrid cranes and electric rail cranes. This will enable the expansion and operational optimization of these terminals, enhancing the competitiveness of the Moroccan economy.

The project is expected to contribute to the sustainability of port infrastructure in several ways. The acquisition and operation of more efficient electric rail cranes and the increase in capacity are expected to result in greater energy efficiency, with a reduction in greenhouse gas emissions per unit of cargo handled. At the same time, the civil works on the Jorf Lasfar multipurpose terminal will integrate climate resilience measures into the quay design to reduce sensitivity to sea-level rises.

This loan will benefit from the first loss risk cover provided by the European Union (EU) through its European Fund for Sustainable Development Plus (EFSD+) under the Municipal Infrastructure and Industrial Resilience (MIIR) guarantee programme, the EBRD said in a statement.

The EBRD has also announced support for the digital transformation of Marsa Maroc through EU-funded technical cooperation activities, which will include the development and implementation of ‘cutting-edge’ digital solutions at the Casablanca multipurpose terminal, as well as a gender-responsive digital upskilling training program for employees.

“We are proud to be supporting Marsa Maroc on this transformative journey, contributing not only to the modernisation of critical infrastructure, but also to the promotion of inclusive and sustainable growth in Morocco’s maritime sector. With over 95 per cent of the country’s trade being conducted through sea ports, the maritime sector is a cornerstone of Morocco’s economic development,” Odile Renaud-Basso, President of the EBRD, commented.

“This loan will enable Marsa Maroc to improve the attractiveness of its terminals, providing our customers with sustainable port facilities, offering more capacity to serve and enhance the competitiveness of Moroccan trade,” Tarik El Aroussi, the CEO of Marsa Maroc, said.

“With this joint operation, the EU shows its continuous commitment to accompany the Kingdom of Morocco in boosting sustainable infrastructure as well as digital transition. The EU and Morocco are committed to greening industrial value chains and maritime corridors. The Morocco-EU Green Partnership allows us to move further in our joint commitment to address climate change, including with a decarbonised economy. Moroccan ports are key to decarbonise maritime transport and international trade,” Patricia Llombart, EU Ambassador in Morocco, highlighted.

Listed on the Casablanca Stock Exchange, Marsa Maroc operates terminals and quays in 11 ports in Morocco and Bénin. The Marsa Maroc Group, including Marsa Maroc SA and its subsidiaries, is active in a number of different segments (containers, solid bulk, general cargo, liquid bulk, RoRo and passengers) and offers both goods services and shipping services.

In related news, French container shipping and logistics giant CMA CGM Group recently signed a joint venture agreement with Marsa Maroc to equip and operate for 25 years a 750-meter section of quay and 35 hectares of yard within the Nador West Med container terminal.

Within the framework of a 25-year sub-concession, the CMA CGM Group and Marsa Maroc will make major investments totaling $280 million, with the aim of achieving an annual terminal output of 1.2 million TEUs.

Capable of handling the world’s largest container ships with a maximum draught of 18 meters, the terminal will eventually be equipped with 8 transshipment cranes, compared with 6 at present, and 24 electric RTGs, compared with 15 at present.

From a wider perspective, Morocco’s green hydrogen sector has been attracting international attention as it offers numerous investment opportunities. Harnessing the potential of a green economy is also said to be in the interests of national development.