Morocco has cancelled the bidding process to select a private operator for its $260 million Casablanca shipyard, ending an 18-month competition that attracted major maritime companies from China, South Korea, Turkey, Italy and Spain.
The decision was taken by Morocco’s National Ports Agency (ANP) after its board reviewed the submitted bids and adopted what local reports described as new strategic directions for the project.
The cancellation means none of the three remaining finalists will receive the planned 30-year concession. (Médias24)
The Casablanca shipyard, valued at about 2.6 billion Moroccan dirhams, was designed to strengthen Morocco’s maritime infrastructure and reduce the country’s reliance on overseas facilities for ship maintenance and repairs.
However, despite the international interest surrounding the project, the facility is still not operational.
Three groups had reached the final stage of the latest bidding process.
One consortium brought together Moroccan construction company Somagec, South Korea’s HD Hyundai Heavy Industries and Turkey’s Kuzey Star Shipyard.
Another was led by Morocco’s Radi Holding in partnership with Spain’s Marina Meridional and China’s Ningbo Xinle Shipbuilding Group. The third finalist was Italy’s San Giorgio del Porto. (Médias24)
Financial offers submitted during the process showed the level of competition among the bidders.
The Radi Holding-led consortium reportedly offered a concession fee equivalent to 4% of annual revenue, while the Somagec-Hyundai-Kuzey Star consortium proposed between 2% and 2.5%. San Giorgio del Porto offered 1%. (Médias24)
The cancellation, however, appears to be less about the financial attractiveness of the bids and more about how Morocco wants to structure control of the strategic facility.
Reports indicate that the new direction is linked to national sovereignty and the development of a stronger domestic maritime industrial ecosystem.
This would give Morocco greater control over an infrastructure considered important to its wider ambitions for shipping, ship repair and the development of a national maritime industry. (Le Desk)
The strategic importance of the shipyard extends beyond commercial repairs.
The facility has the potential to serve commercial, fishing and other vessels, while also supporting the development of local engineering, maintenance and maritime services.
Earlier plans were expected to generate hundreds of skilled jobs and strengthen the country’s industrial capabilities. (Médias24)
For the international companies involved, the cancellation brings an end to a lengthy process that had already experienced several delays.
The tender was relaunched in April 2025 after an earlier concession attempt failed to produce an operator. A previous process had also seen France’s Naval Group withdraw in 2023. (Le Desk)
South Korea’s HD Hyundai has already indicated that it would wait to understand Morocco’s new approach before deciding whether to participate again.
The company had been among the major international groups seeking a role in developing and operating the facility. (Le Desk)
For Morocco, the immediate challenge is now determining how the shipyard will be financed, operated and integrated into the country’s broader industrial strategy. No replacement operating model has yet been formally announced.
The cancellation therefore does not signal the end of the Casablanca shipyard project.
Instead, it opens a new phase in which Morocco must decide whether the facility will eventually be managed through a different private-sector arrangement, a state-led structure or another partnership model.
With billions of dirhams already invested in the infrastructure, the next decision will be closely watched by international maritime companies and investors looking to participate in Morocco’s growing industrial and logistics sector. (Maritime News)
