Morocco to Spend US$1.2bn to Develop Dakhla Atlantic Port: A Gateway to Global Trade Connection

• 14 June 2024
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A transformative project is underway in Dakhla, a city on Morocco’s southern coast. The Dakhla Atlantic Port, a US$1.2 billion megaproject currently under construction, is poised to become a significant trade hub for West Africa and beyond, according to CNN on 28 May 2024.

A Multi-Functional Port Complex

Scheduled for completion in 2028, the Dakhla Atlantic Port will encompass a trade port featuring an oil terminal, a dedicated fishing port, and a shipyard, all spread across an expansive 1,650 hectares. The project also includes a bridge connecting the port to the mainland and a new 7-kilometre road linking the port to a major national highway, creating seamless access from Tangier in the north to Mauritania’s border in the south.

Connecting Continents and Boosting Trade

“We’re constructing an ecosystem (for a global trade flow),” says Nisrine Iouzzi, construction director for the Dakhla Atlantic Port. This ecosystem approach signifies the creation of a comprehensive trade and logistics hub.  With an anticipated annual capacity of 35 million tons of goods, the port is expected to significantly boost not only Morocco’s economy but also position the country as a vital maritime connection for global trade.  Ms. Iouzzi envisions the port facilitating trade between West Africa, the Middle East, Europe, North and South America, and even the Canary Islands.

Strategic Location and Foreign Investment

The Dakhla Atlantic Port’s strategic geographic location on Morocco’s Atlantic coast is a key factor in its potential success.  This strategic positioning has already attracted significant foreign investment, including capital from the United Arab Emirates.

Gateway to a Growing Market

The Dakhla Atlantic Port aligns with Morocco’s national port strategy, which aims to modernise and strengthen the country’s port infrastructure by 2030 to enhance its participation in global supply chains.  While other Moroccan ports like Casablanca, Tangier-Med, and Agadir are undergoing upgrades, the Dakhla Atlantic Port holds particular significance due to its potential to open new trade routes for West Africa.

“We strongly believe that with this infrastructure – port infrastructure, road infrastructure, renewable energy – we will be very attractive for investors that aim to get to one of the fastest growing markets, which is the West African market,” says Mounir Houari, General Manager of Dakhla’s Regional Investment Centre.

The implementation of the African Continental Free Trade Agreement, aiming to create a single market for goods and services within Africa, further underscores the potential of the Dakhla Atlantic Port to encourage the processing of raw materials on the continent.

Challenges and Opportunities

While the potential for the Dakhla Atlantic Port is undeniable, some concerns remain.  Turloch Mooney, head of port intelligence and analytics at research firm S&P Global Market Intelligence, cautions that historical unrest in the Western Sahara region could pose challenges for developing reliable logistics infrastructure.

He emphasised that “good governance, reliable transportation connections, and political stability will be crucial factors in determining the port’s long-term success.”

• Projects Development
• Road and Infrastructure