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2025-04-092025-04-14

Casablanca Set to Host Africa’s Premier Shipbuilding Facility

Strategic Imperative and Project Overview

Consolidating Maritime Leadership

Morocco has initiated an international tender for the concession, development, equipping, operation, and maintenance of what is slated to become Africa’s largest shipyard. Located in Casablanca, this ambitious $300 million project signifies a strategic move to enhance Morocco’s maritime capabilities and establish the nation as a key player in the regional and continental maritime industry. The National Ports Agency (ANP), a state-run entity, is spearheading this initiative, seeking experienced operators for a 30-year concession to manage the expansive 52-acre facility. This development mirrors Morocco’s successful trajectory in the automotive sector, where it has emerged as a significant exporter to the European Union. The government aims to replicate this industrial prowess in the maritime domain, fostering economic growth and technological advancement.

State-of-the-Art Infrastructure

The tender documents released by the ANP provide detailed specifications of the planned infrastructure. Key installations will include a substantial 244-meter by 40-meter dry dock, capable of accommodating large vessels for repair and maintenance. Additionally, a 150-meter by 28-meter lifting platform with a 9,000-tonne capacity will enable efficient handling of various ship types. The facility will also feature a 62-meter by 13-meter basin equipped with a 450-ton gantry crane, further enhancing its operational capabilities. Complementing these core structures will be 820 linear meters of outfitting quays, providing ample space for post-docking work, and 21 hectares of open terrain dedicated to operational activities and logistical support. This comprehensive infrastructure underscores the scale and ambition of the project.

Attracting Global Expertise

The international tender mandates that bidding companies possess at least ten years of experience in operating comparable shipyards. This requirement aims to ensure that the project is entrusted to seasoned professionals capable of managing a facility of this magnitude and complexity. The tender allows for both independent bids and consortiums, with the latter requiring an experienced operator to lead the group. Industry sources suggest that prominent international players such as France’s Naval Group, a leading naval contractor, and South Korea’s Hyundai, the operator of the world’s largest shipyard in Ulsan, are potential frontrunners for the contract. The involvement of such experienced entities highlights the global interest in this strategic African maritime project.

Strategic Objectives and Regional Impact

Enhancing Naval Autonomy

Beyond serving commercial and fishing vessels, the new shipyard will provide critical maintenance and repair services for Morocco’s military fleet. This capability is particularly significant as it will allow Morocco to maintain its naval vessels domestically, thereby reducing the expenditure of foreign currency on overseas services. This move aligns with Morocco’s broader strategy to strengthen its national sovereignty and reduce reliance on external entities for critical infrastructure maintenance. The timing of this development is also noteworthy, coinciding with Morocco’s plans to loosen its currency peg in 2026, making domestic maintenance a more economically sound option.

Capitalizing on Geopolitical Shifts

The project’s strategic importance has been further amplified by recent geopolitical developments. Following the autumn 2022 redirection of Russia’s fishing fleet maintenance from Spanish Canary Island ports to Moroccan organizations due to sanctions related to the Ukraine conflict, Morocco has witnessed an increased demand for its maritime services. The new shipyard is poised to capitalize on this shift, positioning Casablanca as a viable alternative for vessel maintenance in the region. This ability to adapt to and benefit from global changes underscores the strategic foresight behind the development of this large-scale facility.

Replicating Industrial Success

Morocco’s decision to invest heavily in shipbuilding follows a pattern of successful industrial expansion, most notably in the automotive sector. The Tanger-Med port’s remarkable 18.8% growth in container traffic in 2024, contrasting with the stagnation at Spain’s Algeciras port, demonstrates Morocco’s growing prominence in global trade and logistics. Similarly, the automotive industry has flourished, with Renault and Stellantis (formerly PSA) exporting over 500,000 vehicles to the European Union in 2023, valued at €15.1 billion. This sector now accounts for 27% of Morocco’s exports and 16% of its GDP, surpassing traditional revenue sources like remittances and tourism. The government aims to leverage this model of strategic investment and industrial development to propel the maritime sector to similar heights.

Economic Opportunities & Future Prospects

Boosting Local Employment and Skills

The construction and operation of Africa’s largest shipyard are expected to generate significant employment opportunities in Casablanca and the surrounding regions. The facility will require a skilled workforce across various disciplines, including boilermaking, carpentry, composites, fitting, and general operations. This influx of jobs will contribute to local economic growth and provide valuable professional development opportunities for Moroccan citizens. Furthermore, the project has the potential to become a training center for maritime professions, collaborating with local vocational institutions to enhance the skills and expertise of the national workforce in the maritime industry.

Fostering Ancillary Industries

The establishment of a major shipyard will also stimulate the growth of numerous ancillary industries. These include port services, logistics, marine equipment suppliers, and maintenance service providers. The increased maritime activity in Casablanca will create a ripple effect, benefiting a wide range of businesses and contributing to the diversification of the local economy beyond traditional sectors. This interconnected industrial ecosystem will enhance Morocco’s overall economic resilience and competitiveness in the maritime domain.

Enhancing Regional Trade and Connectivity

By providing state-of-the-art facilities for vessel repair and maintenance, the Casablanca shipyard will enhance Morocco’s role as a crucial maritime hub connecting Africa and Europe. The ability to service a wide range of vessels, including commercial, military, and fishing fleets, will attract maritime traffic and strengthen Morocco’s position in regional and international trade networks. This development aligns with Morocco’s broader strategy to improve its port infrastructure and capitalize on its strategic geographic location at the crossroads of major shipping routes.

Possible Impact for Businesses Operating in Morocco:

Increased Demand for Local Suppliers: The construction and operation of the shipyard will create significant demand for local suppliers of materials, equipment, and services. This includes steel, paints, electrical components, safety gear, and logistical support, presenting new business opportunities for Moroccan companies.
Growth in Maritime Services Sector: Businesses involved in maritime services such as ship chandling, repairs, maintenance, and marine surveying will experience increased demand due to the presence of a large shipyard and the anticipated rise in vessel traffic.
Opportunities for Joint Ventures and Partnerships: The involvement of international players in the shipyard project may lead to opportunities for Moroccan businesses to form joint ventures or partnerships, facilitating technology transfer, knowledge sharing, and access to new markets.
Development of Specialized Skills and Training: The need for a skilled workforce at the shipyard will drive demand for specialized training programs in maritime trades. Businesses offering vocational training and skills development in relevant areas can capitalize on this need.
Enhanced Port Infrastructure and Logistics: The development of the shipyard is likely to be accompanied by improvements in the surrounding port infrastructure and logistics network, benefiting all businesses that rely on efficient maritime transport.
Attraction of Foreign Investment: The ambitious nature of the shipyard project can enhance Morocco’s attractiveness as an investment destination in the maritime sector, potentially leading to further foreign direct investment in related industries.
Boost to the Local Economy: The overall economic activity generated by the shipyard, including job creation and increased business opportunities, will have a positive impact on the local economy in Casablanca and potentially other regions.
Support for the Fishing Industry: The availability of a large, local shipyard will provide better and more cost-effective maintenance and repair services for Morocco’s fishing fleet, supporting the growth and sustainability of this sector.
Potential for Shipbuilding Activities: While initially focused on repair and maintenance, the tender allows bidders to include a shipbuilding component. This could pave the way for the development of a domestic shipbuilding industry in the future, creating new opportunities for related businesses.

Quote from an Official Source:

“We aim to capture part of the demand currently handled by the overcrowded shipyards in southern Europe and serve African vessels en route to Europe,” said Abdellatif Lhouaoui, ANP’s head of communications.

(Source: https://en.hespress.com/107925-morocco-launches-tender-for-management-of-africas-largest-shipyard-in-casablanca.html)

Airline Tax Threat to Moroccan Tourism in 2025?

Airline Tax Threats to Moroccan Tourism in 2025?

Morocco-based French tourism operators worried

While the tourism sector is on cloud nine, with record figures in 2024 and the first quarter of 2025, it could be in for a downturn for the rest of the year, particularly due to the loss of a significant portion of French customers, the leading country in terms of arrivals. This decline affects not only the French market, but might also affect other segments, following the French government’s decision to increase its TSBA solidarity tax on airline tickets (Taxe de Solidarité sur les Billets d’Avion) to the detriment of foreign tourist destinations.

It is with great regret that Ryanair announced the cancellation of its two routes between Marrakech and Porto, Portugal. This decision follows the doubling of airport taxes in France starting in March, unlike other European countries, which are instead seeking to reduce them. The lack of common legislation on the matter within the European Union makes these tax disparities even more problematic.

This situation also worries French tour operators, who schedule charter flights to Morocco and are already seeing their revenues plummet. Moroccan hotels, which largely depend on this clientele attracted by affordable stays, are also likely to suffer. The future of the sector will depend on the evolution of this tax decision and any potential compensation measures that could be implemented to mitigate its impact.

Translated and adapted from actu-maroc.com/menaces-sur-le-tourisme-marocain-en-2025/ by fulbridge.com, BBA Morocco member

Background:

Key Developments:

Increased “Solidarity Tax” (TSBA):

The French government has moved forward with substantial increases to the “Solidarity Tax” applied to airline tickets. This tax, designed to generate revenue, has seen a sharp rise in rates across various flight distances and travel classes. These increases went into effect on March 1st, 2025.

Varying Tax Rates:

The tax increase is not uniform. It varies significantly based on:

Flight distance (domestic, intra-European, mid-haul, long-haul).
Travel class (economy, premium economy, business, first class).
This means that those travelling in business and first class on long-haul flights will bear the heaviest burden.

Impact on Private Jets:

In addition to commercial flights, France has also introduced a new passenger tax specifically targeting private jet flights. This measure is designed to increase revenue from private aviation.

This tax is also tiered, depending on distance flown, and the type of private aircraft used.

Retroactive Charges:

Some airlines, most notably Transavia, have implemented surcharges on tickets that were purchased before the new tax went into effect. This has caused frustration among consumers.

It is important to notice that not all airlines have taken this action.

Economic Impact:

The French government anticipates generating a significant amount of additional revenue from these tax increases. However, the aviation industry expresses concerns about the potential negative impacts on:

Airline competitiveness.
Regional airport viability.
Tourism.
Job losses.
Industry Concerns:

Competitiveness:

Airlines argue that these taxes will make French airports less competitive compared to other European hubs.

Regional Impact:

There are fears that the increased taxes will disproportionately affect regional airports, potentially leading to reduced connectivity.

Consumer Impact:

Passengers will face higher ticket prices, which could deter travel.

Lack of Consultation:

A large complaint from transport unions is that the tax increases have been implemented without proper consultation or impact studies.

Environmental Reasoning:

The French government has stated that part of the reasoning behind the tax increases is to help with environmental concerns. However, the aviation industry has pushed back on this, and argued that this will harm the industry.

The situation is evolving, and the long-term effects of these new taxes remain to be seen.

Overblown threat? A historic look at the UK’s APD

“The Air Passenger Duty (APD), for instance, is a common tax included on an air ticket for travellers flying from the UK[.] Since its introduction in 1994, APD has been a pivotal measure aimed at generating revenue for the UK government while pushing individuals to consider the environmental implications of their travel choices. This tax has incited extensive debate, as various stakeholders present compelling arguments for and against its continued implementation. “

A University of Hertfordshire study on the subject highlights the varying impact of the APD:

Short-haul trips: Tourist demand is inelastic for APD below £37.505. As the current APD rate ranges from £13 to £26 for short-haul trips, it has a limited effect on tourist demand.

Medium- and long-haul trips: The current APD rate is more than £75, which is more than the critical value of £52.505, above which the tourist demand becomes highly elastic. This confirms that the current APD rate for medium- and long-haul trips may deter tourists from travelling overseas.

An Airline UK report would suggest:

Short-haul and Long-haul: APD increases ticket prices, which dampens demand and negatively impacts connectivity at UK airports.

Ticket Prices: APD represents, on average, about 16% of ticket prices for short-haul destinations and 18% for long-haul destinations. This increases to 27% and 26% respectively during off-peak periods.

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2025-02-272025-03-17

5-Dirham Sardine: A Ripple in Morocco’s Seafood Market

5 dirham sardines creates debate about middle-men in the markets

The image of a bustling Marrakech fish stall, with sardines piled high and sold for a mere 5 dirhams per kilo, has ignited a fervent debate across Morocco. This seemingly simple act by a local fishmonger, just ahead of Ramadan, has exposed the complex dynamics of the nation’s seafood industry, raising crucial questions about affordability, the role of middlemen, and the feasibility of sustainable pricing.

The Cultural and Economic Significance of Sardines in Morocco

Sardines hold a significant place in Moroccan cuisine and culture, especially during Ramadan, when they are a common feature on Iftar tables. Their accessibility has traditionally positioned them as a crucial protein source for lower-income families. However, fluctuating prices, often attributed to the involvement of intermediaries, have made this staple increasingly precarious.

Challenging the Status Quo

The Marrakech fishmonger’s bold move has directly challenged the prevailing narrative of inflated sardine prices. By bypassing the usual channels and selling directly to consumers at a drastically reduced rate, he demonstrated that a more affordable model is potentially viable. This action has resonated deeply with consumers struggling with rising living costs, prompting widespread praise and calls for greater transparency in the seafood supply chain.

However, the 5-dirham sardine has also drawn skepticism and criticism from wholesalers and industry professionals. They argue that such a low price is unsustainable, potentially leading to losses for fishermen and other stakeholders. Concerns center on the costs associated with fishing, transportation, storage, and market fees, which they claim make such a price point unrealistic.

The Middleman’s Grip: Addressing Price Inflation and Official Concerns

The core of the issue lies in the influence of middlemen, whose role in the distribution chain has been a subject of persistent complaints. These intermediaries, often operating between fishermen and retailers, are accused of inflating prices through multiple layers of markups. Consumers and some industry observers argue that streamlining the distribution process by reducing the number of intermediaries could significantly lower prices and ensure fairer returns for fishermen.

Official sources within Morocco have acknowledged the challenges posed by middlemen. The National Office of Fisheries (ONP), responsible for regulating the fishing sector, has faced numerous complaints regarding price manipulation and unfair practices. Reports from the ONP and the Ministry of Agriculture, Maritime Fisheries, Rural Development and Forests have highlighted the need for improved market transparency and better enforcement of regulations to protect both consumers and fishermen.

For example, reports published by the Economic, Social and Environmental Council (CESE) have repeatedly pointed to the issue of intermediaries and the lack of price transparency in the food distribution sector, including fish. CESE reports have called for a more efficient and equitable system, with better traceability and price monitoring. Furthermore, consumer protection associations in Morocco have frequently filed complaints with the relevant authorities, citing instances of price gouging and unfair competition.

The ONP has attempted to address these issues by implementing measures to improve market information and promote direct sales from fishermen to retailers. However, the complexity of the distribution chain and the entrenched practices of some intermediaries have made it difficult to achieve significant change.

Catalyzing Debate and Questioning Long-Term Feasibility

The Marrakech fishmonger’s act has served as a powerful catalyst for a renewed discussion about these systemic problems. It has highlighted the potential for alternative models, where direct sales and reduced intermediation could benefit both consumers and fishermen. However, the long-term sustainability of such models remains a critical question.

Professionals in the sector argue that the 5-dirham price point may not account for all the costs involved, including the risks associated with fluctuating catches and market demand. They emphasize the need for a balanced approach that ensures fair returns for all stakeholders while maintaining affordable prices for consumers.

Now what?

The debate underscores the need for a comprehensive reform of the seafood distribution system in Morocco. This reform should focus on:

Increased Transparency: Implementing better price monitoring and traceability systems to ensure fair pricing and prevent price manipulation.
Reduced Intermediation: Promoting direct sales from fishermen to retailers and exploring alternative distribution models to reduce the number of intermediaries.
Strengthened Regulation: Enhancing enforcement of regulations to protect both consumers and fishermen from unfair practices.
Support for Fishermen: Providing financial and technical support to fishermen to improve their efficiency and reduce their reliance on intermediaries.
Consumer Education: Raising awareness among consumers about market dynamics and promoting responsible purchasing practices.

The 5-dirham sardine has become more than just a price point; it has become a symbol of the struggle for affordability and fairness in Morocco’s food market. As the debate continues, it is clear that addressing the challenges posed by middlemen and ensuring sustainable pricing will require a concerted effort from all stakeholders, including government agencies, industry professionals, and consumers. The challenge is to find a balance between affordable prices for consumers and fair returns for the people who work to bring the fish to the market.

Sources and related content

Local fish merchant slashes prices revealing the price gouging of middlemen – TelQuel

Key Findings from Reputable Sources:

Economic, Social and Environmental Council (CESE):
- The CESE has repeatedly highlighted the “dysfunctioning role of the marketing channels” and the “unregulated role of middlemen” in driving up food prices.
- They emphasize that these intermediaries engage in “speculative practices” that contribute to price spikes.
- The CESE has called for government regulation of these middlemen and for increased transparency in the food market.
Food and Agriculture Organization of the United Nations (FAO):
- The FAO acknowledges the inefficiencies within Morocco’s food distribution systems, including the role of “unnecessary yet compulsory middlemen.”
- They point to the inadequacy of wholesale facilities as a contributing factor to food losses, hygiene problems, and impediments to an efficient food marketing system.
- The FAO is also involved in projects aimed at modernizing Morocco’s urban agrifood logistics, including the development of new wholesale markets.

2025-02-182025-03-17

SeaLead’s MEDUS Service: Unlocking Transatlantic Trade Opportunities

SeaLead’s recent announcement of its new Mediterranean to USA (MEDUS) service marks a significant development for businesses operating in both Morocco and the United States. This direct liner shipping route, connecting Casablanca to the US East Coast, opens a wealth of economic opportunities by streamlining trade and reducing transit times. For business leaders, understanding the implications of this new service is crucial for capitalizing on its potential.

Economic Opportunities for Operators in Morocco

Morocco, strategically located at the crossroads of Europe and Africa, is rapidly emerging as a key player in global trade. The MEDUS service enhances this position by providing direct access to the lucrative US market. This access is particularly beneficial for Moroccan exporters looking to expand their reach and diversify their customer base.

Enhanced Export Capabilities:

The MEDUS service offers a reliable and efficient transportation solution, reducing the logistical challenges often associated with transatlantic trade. This translates to shorter lead times and improved supply chain predictability, enabling Moroccan businesses to respond quickly to market demands. Key sectors poised to benefit include agriculture, textiles, and automotive components, all of which are significant contributors to Morocco’s export economy.

Boosting Local Industry:

Improved access to the US market can stimulate investment in local industries. As Moroccan businesses expand their operations to meet the increased demand, they will require additional resources, including labor, materials, and infrastructure. This can lead to job creation and economic growth in the region. Furthermore, the increased trade volume can attract foreign investment, further bolstering Morocco’s economic development.

Strategic Hub Development:

Casablanca, as a key port in the MEDUS rotation, is set to become an even more critical logistical hub. The increased shipping activity will drive investment in port infrastructure, warehousing, and related services, creating a ripple effect throughout the local economy. This strengthens Morocco’s position as a gateway for trade between Africa and the Americas.

Economic Opportunities for Operators in the USA

For US businesses, the MEDUS service offers a valuable opportunity to diversify their sourcing and expand their market reach. By establishing a direct link to Morocco, companies can tap into a growing market and leverage the country’s strategic location for access to other African and European markets.

Diversification of Supply Chains:

The MEDUS service allows US businesses to diversify their supply chains, reducing their reliance on traditional sources. This diversification is crucial for mitigating risks associated with geopolitical instability and supply chain disruptions. Access to Moroccan suppliers can provide a cost-effective alternative for various goods, including agricultural products, textiles, and manufactured goods.

Expanding Market Access:

The direct shipping route opens new avenues for US exporters to reach the Moroccan market. As Morocco’s economy continues to grow, demand for US goods and services is expected to increase. The MEDUS service provides a streamlined and efficient channel for US businesses to capitalize on this growing market.

Strengthening Trade Relations:

The new service strengthens trade relations between the US and Morocco, fostering collaboration and investment opportunities. This enhanced connectivity can lead to increased business partnerships, technology transfer, and knowledge sharing, benefiting both economies.

Key Features of the MEDUS Service

The MEDUS service offers several key features that make it an attractive option for businesses on both sides of the Atlantic:

Direct bi-weekly sailings.
Optimized transit times to the US East Coast.
Reliable and efficient transportation.
Port rotation: Mersin, Istanbul, Gebze, Aliaga, Casablanca, New York, Norfolk.
Direct connection between Morocco and the US East Coast.

This new service provides a significant boost to transatlantic trade, offering numerous economic opportunities for businesses in Morocco and the USA. By leveraging the MEDUS service, companies can enhance their competitiveness, expand their market reach, and contribute to the growth of their respective economies.

Source

SeaLead announces Transatlantic Coverage with New Mediterranean to USA (MEDUS) Service