The Morocco Railways Case - World...

Transport Forum

Mohamed Rabie KHLIE

From Restructuring to Development :

The Morocco Railways Case

Washington, March 30, 2011

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2

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Morocco at a Glance

The Restructuring Process

Development Cycle

Results on the Ground

1 Morocco at a Glance

General Data on Morocco

Restructuration et développement : Expérience des chemins de Fer du Maroc

Area : 710 850 km²

Population : 32 milions

Demography : +1,3% per year

Growth Rate GDP : 5,1% (2001-2009)

IDE : 17,2 billions US$ (2001-2009)

Transport Contribution to GDP 6%

Tourism : 8,4 millions visitors in 2009

1 Morocco at a Glance


ONCF in a few words (2010)

Stations : 120

Trains/day : 280

7 800 staff

36 Millions tons

31 Millions passenger trips

2 110 km network

1 300 km electrified

350 coaches

6 400 wagons

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Morocco at a Glance

Restructuring Process

Development Cycle



2 Restructuring Process

Results of an Audit (1994)

Deteriorated financial situation

Rigid and centralized organization

Overstaffed

Loss of market share

Management driven by technicians

Backlog of network rehabilitationServices unsuitable for demand

Tense social climate


2 Restructuring Process

Ongoing reforms

Rationalizationof expenditures & production

means up to standard

Redesign of commercial services

Management of overstaffing

Contract ProgrammInstrument (World Bank

Technical Assistance)

Levers

Private type governance

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Morocco at a Glance


Devlopment Cycles



3 Development Cycle

Key milestones

Performance improvement

2005-2009

2010-2015

Modernizationand expansion

Qualitative development


3 Development Cycle

Organization

Organization in business units, then in poles

Separation between operations and infrastructure

Decentralization of decisions

Quick turnaround

Culture of «Responsabilization»

Better coordination


3 Development Cycle

Commercial Services Aspects

Strategy focusing on « client » and « profitability »

Attractive and competitive services

New services (unlocking of remote areas)

Network of logistic platforms

Systematic attention to client (barometer)

Tariff adjustments: yield management

Better positioning

Regular growth of turnover

Satisfaction rate of clients (74%)

Increased role for mobility


3 Development Cycle

Investments

650980

2250

4100

1996-2000 2002-2005 2005-2009 2010-2015

Millions US$

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Morocco at a Glance


From Restructuring to Development



4 Results on the Ground

Commercial results

31

+12%11

Passengers (106)

3627

Freight (106 T)

400190

Income (106 $)

From 1994 to 2010….

per year +3% per year

+7% per year



Management Indicators

From 1994 to 2010….

1038

+12%450

Productivity UK/Staff (103)

par an

26%

47%

Staff expenditures/ CA (103)

7800-46%

14400

Staff



Management indicators

Productivity Benchmarking



Financial Indicators

1994 to 2010 (106 US$)

-32Operating Income

1994 2010

-93Net Income

106Value Added

-29Cash Flow

13Gross Operating Surplus

70

-5

300

138

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In a Nutshell


Lessons from Morocco Experience

No universal and fully replicable solution

Strong commitment by Government and Management

Social partners implication

Suitable communication strategy

Restructuring….

Thank you for your attention

The Morocco Railways Case - World...

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