Morocco's Ambitious Water Program

By Liesl Venter

The construction of water highways and desalination plants in Morocco is set to provide breakbulk and project cargo with a sizable new stream of transport work. Project professionals from DHL Global Forwarding, TRO and HPC-Hamburg assess the opportunities. 

From Issue 1, 2024 of Breakbulk Magazine.


In Morocco, significant changes are on the horizon as the country rolls out – and speeds up – a massive water program with an even bigger budget. As the nation faces its most severe drought in four decades, it has recognized the urgency to significantly enhance efforts to deliver water to the kingdom.

In 2020, it launched its National Programme for Potable Water Supply and Irrigation, or PNAEPI, 2020-2027. However, the imperative at present is to expedite projects and advance programs as quickly as possible, given the ongoing decrease in rainfall. With a population exceeding 37 million and an economy heavily reliant on agriculture, ensuring water availability is a paramount concern.

Morocco is a climate hotspot among the world’s most water-stressed countries. The pressing issue of water scarcity imposes substantial economic constraints, and the situation is anticipated to intensify as the country Middle East nears the critical threshold of 500 cubic meters of water per person per year by 2030. The looming specter of climate change is expected to compound and trigger cascading effects on Morocco’s water security.

It is not just about quenching thirst as the water program is considered a game-changer for the North African country to tackle climate change and deliver sustainability.

This is all good news, particularly for the project cargo sector, considering the substantial quantities of goods that must be transported to facilitate water flow.


Emerging Projects on Horizon

As part of the broader National Water Plan, the PNAEIP is budgeted at US$40 billion and focused on the supply of potable water and irrigation until 2027. It encompasses building new dams, desalination plants, transferring water resources, exploiting underground aquifers, reusing treated water, and improving water distribution in rural areas. For example, the country is planning to construct Africa’s largest seawater desalination plant.

In July, the World Bank approved a US$350 million financing package to support Morocco’s water program, focusing on improving governance in the water sector, promoting efficient water use, and leveraging non-conventional water resources.

Ahmed Sokkar, head of DHL Industrial Projects North Africa, told Breakbulk the project sector was booming in Morocco with several projects taking off. “The government is building 18 new dams to increase water storage capacity. These new dams will raise the country’s capacity from 19 billion cubic meters in 2020 to 27 billion cubic meters once completed,” he said.

The country also has various irrigation projects to efficiently use water resources for agriculture. “These projects often involve the construction of canals, reservoirs, and infrastructure to improve water distribution,” Sokkar said.

The construction of desalination plants in the country has been another exciting development, with the government eyeing these projects as a strategic solution to combat water scarcity in specific regions. The country aims to expand its desalination capacity with nine additional plants expected to be operational by 2030.

The Agadir region has progressed desalination projects to provide a reliable source of fresh water. A different desalination facility is currently being built in Dakhla, within the portion of Western Sahara under Moroccan control. This US$880 million desalination unit is being developed through a public-private partnership, or PPP. The plant will be powered by wind-generated energy and provide water for urban distribution and irrigation.

The Agadir Desalination Plant, with an initial capacity of 275,000 cubic meters daily, is also being built under a PPP agreement for US$460 million. The project design allows for a capacity expansion of 400,000 cubic meters daily. This seawater desalination plant will supply drinking water to 2.3 million people by 2030.

Currently under study is a desalination plant for the Moroccan capital of Casablanca with an estimated 300 million cubic meters per year capacity by 2030. It will require an estimated US$868.3 million.

Sokkar says the Morocco-Marrakech region water supply project is another positive development to ensure a consistent potable water supply to Marrakech city and its surrounding urban areas, sourced from the Al Massira dam. “There are also several interconnection projects between hydraulic basins, often referred to as “water highways,” that also bear mentioning. These aim to transfer water from areas with surplus to those with deficits, improving water access and security.”

Over and above the investment in the water sector, the country has also been investing heavily in renewable energy, including solar power. The Noor Ouarzazate Solar Complex is one of the world’s largest solar power plants. It reduces the water used in traditional electricity generation, as it uses solar energy. Then there are the ongoing developments in the hydrogen sector as the country envisions becoming a major global exporter.


Significant Opportunities

“The current situation in Morocco presents significant opportunities for the expansion of the project logistics and the breakbulk sector,” Sokkar said. “This growth is expected to trigger a cascade of transportation needs and the establishment of new firms and suppliers. Consequently, there will be numerous opportunities for transporting equipment through breakbulk or charter solutions.”

Navigating any large-scale cargo movement in Africa poses challenges due to existing infrastructure limitations, making transportation a complex undertaking across the continent. Morocco is no different. There are fears that ports, roads, and railways may need to be developed or equipped to handle large-scale cargo and breakbulk shipments.

“It’s important to acknowledge that the government is actively upgrading ports to address these infrastructure limitations,” Sokkar said.

According to Moataz Aly, global key account manager at HPC-Hamburg, the increasing number of water projects has heightened interest in Morocco as a business destination made only more alluring by the relatively modern and diverse logistics infrastructure. “It hosts various port and terminal operators, both local and foreign, including major international hubs like Tanger-Med and multipurpose terminals in Casablanca. Additionally, ongoing port developments in Nador and Dakhla contribute to its appeal,” he told Breakbulk.

Youssef Errachdi, executive, key accounts pricing & procurement at TRO, the exclusive agent for DSV in Morocco, said it was not only the port infrastructure but also the extensive road and rail networks in the country that made delivering these projects far less challenging than would be the case in many African jurisdictions. Inadequate infrastructure for transporting goods remains one of the significant obstacles facing the project cargo sector across Africa.

“Morocco has a solid infrastructure with a railway network connecting Tangier to Casablanca and Casablanca to Marrakesh. Continuous investments in the modernization and expansion of roads are delivering a highly efficient transportation system for moving cargo throughout the country,” he said.

According to Aly, Morocco’s freight forwarding sector will adeptly manage the rising number of projects with little difficulty. “Morocco boasts some of the most modern ports in Africa, operated by international and local alliances.

"While breakbulk and project cargo volumes face seasonality challenges, any difficulties in accommodating certain commodities and parts through existing facilities have a minimal impact on project deliveries. Anticipated future growth in breakbulk and project cargo volumes will be handled by the new port developments and expansions that are taking place.”


Overcoming Hurdles

More concerning than infrastructure is the availability of specialized equipment such as cranes, heavy-lift trucks, or trailers, as these are limited in specific areas of Morocco. This constraint can affect the efficient handling of project cargo and breakbulk shipments, demanding meticulous planning and coordination to ensure access to the required equipment when needed, Sokkar explained.

Also, extensive customs procedures and documentation can present red tape as the requirements sometimes demand more time and effort. A deep understanding of Morocco’s local customs regulations is essential for effectively managing this challenge and avoiding delays, Errachdi said.

Language barriers are another concern. “Effective communication is pivotal in the logistics industry, and overcoming the language differences in Morocco will be crucial to avoiding misunderstandings and delays,” Sokkar said, highlighting that none of the challenges faced by forwarders were insurmountable.

“Morocco’s ongoing commitment to infrastructure development and improvements in the logistics and transportation sector is promising. Continued investments and enhancements, coupled with proactive industry engagement, will contribute to overcoming these challenges and further unlock Morocco’s potential as a hub for project cargo and breakbulk shipments.”

According to Aly, water projects represent just one facet of Morocco’s highly optimistic economic outlook. He anticipated a surge in imports and exports, surpassing global averages, with Northern ports poised to attract increased transhipment volumes, aligning with the latest market forecasts.

The country’s stable political and governmental environment and advancements in anticorruption rankings underpin this growth. Nonetheless, Aly noted that the recent global economic downturn may exert pressure on the value of the Dirham, potentially impacting the standard/cost of living.

Sokkar agreed, highlighting that the nation is witnessing significant trends, particularly in diversified energy sources and investments in renewable energy. The country is actively diversifying its energy sources, marked by projects such as the construction of seawater purification facilities, gas power stations or solar power plants.

“The nation has made substantial strides in modernizing its ports and expanding its road and rail networks, all aimed at enhancing overall logistical efficiency. In line with this ongoing initiative, Morocco is initiating a new railway project linking Marrakech to Agadir. Noteworthy developments include establishing new ports in strategic coastal regions like the Dakhla, Laayoune, and Nador ports, underscoring Morocco’s dedicated efforts to expand and enhance its logistics capabilities.

“Anticipated to play a pivotal role, these infrastructure investments are set to fortify Morocco’s standing as a key player in regional and international trade,” Sokkar said.


TOP PHOTO: Tanger-Med port industrial complex, Morocco. CREDIT: Tanger-Med