Hyundai Rotem is expected to set a record high order backlog in the institutional sector as it won a project to supply electric trains from the Moroccan National Railway Office. Having recently succeeded in securing multiple orders for electric trains and its first export of high-speed trains, Hyundai Rotem plans to push for additional exports based on its expanded portfolio.
According to the industry on the 26th, Hyundai Rotem was selected as the final contractor for a 2-tier electric train supply project worth 2.2027 trillion won from the Moroccan National Railway Office the previous day. This marks the largest single-project order record for Hyundai Rotem.
With this order, Hyundai Rotem's order backlog is expected to exceed 20 trillion won. The company's order backlog at the end of last year was recorded at 18.7578 trillion won, approximately a 7% increase compared to the previous year. Among these, the order backlog in the institutional sector amounts to 14.646 trillion won, accounting for 75% of the total. The order backlog for the institutional sector has risen sharply with ▲ 7.4618 trillion won in 2022 ▲ 11.4096 trillion won in 2023 ▲ 14.646 trillion won in 2024.
Hyundai Rotem has been steadily expanding its overseas orders in the institutional sector recently. In 2023, it secured projects for electric trains in Kaohsiung's Red Line in Taiwan, electric train supply in Queensland, Australia, and a project to modify 2-tier electric trains in Sydney, Australia. Last year, it won projects for electric trains in Los Angeles, a tram project in Egypt, and the additional production of 2-tier passenger cars in Boston. It also recorded its first export of high-speed trains to Uzbekistan.
In the third quarter of last year, Hyundai Rotem's train plant operation rate reached 101.4%. The company plans to invest about 700 billion won over three years for facility improvements at the Changwon train plant, including 21.5 billion won last year, 24.8 billion won this year, and 23 billion won next year.
Hyundai Rotem is also seeking additional exports within Morocco. The Moroccan government is selecting operators in four sectors, including high-speed vehicles with a speed of 320 km/h, semi-high-speed vehicles with a speed of 200 km/h, and commuter and urban electric trains with a speed of 160 km/h. The commuter and urban electric trains were ordered by Hyundai Rotem this time, while the 320 km/h high-speed train was awarded to Alstom from France in October last year. The results for the 200 km/h semi-high-speed vehicles have yet to be announced.
Poland and the United Arab Emirates (UAE) are also countries where Hyundai Rotem aims to export high-speed trains. Poland is pushing for the construction of a 2,000 km long high-speed railway connecting the new airport with major hub cities. In 2019, Hyundai Rotem was selected as the vehicle supplier for the tram project in Warsaw, Poland, providing 123 vehicles and paving the way for local railway projects. It has also built cooperative relations through exports of K2 tanks in the defense sector.
The UAE is also making efforts to secure orders for the upcoming high-speed train introduction project, including sending a support team from the Ministry of Land, Infrastructure and Transport directly to the region last year. It maintains cooperative relations with Korea in the nuclear power and defense sectors.