Rabat

- Containers are the symbol of global trade and their lifeline. They connect continents and allow the transport of goods in the best conditions. More than 90% of the world's goods are transported on board about 170 million shipping containers worldwide.

China monopolizes the container industry, as it owns more than 90% of the market share, and Morocco is moving steadily to invest in this industry, which experts consider profitable, given the availability of all the conditions that make it a leading country at the regional level in this industrial sector.

The Kingdom has raw materials and a steel system capable of enabling it to succeed in this industry, and the geographical proximity to major European and African ports constitutes a competitive advantage.

Investing in the container industry

The Ministry of Industry launched the Projects Bank in September 2020 in the context of activating the economic recovery plan. The bank provides Moroccan and foreign investors with comprehensive information that enables them to know the nature of the field they want to invest in, the legal texts that must be followed, the practical steps needed to start investing, and the facilities available in this field.

The volume of investment in the shipping container industry is estimated between 70 and 100 million dirhams (between 7 and 10 million dollars), in order to achieve a turnover between 150 and 250 million dirhams (between 15 and 25 million dollars), while the gross profit margin ranges between 5 and 10%, As a start, production begins with an annual production capacity of 6 to 10 thousand containers.

Head of the Federation of Metallurgical, Mechanical and Electromechanical Industries, Abdelhamid Souiri, says Morocco aspires to play a much larger role in the container industry.

Al-Suwairi added in an interview with Al-Jazeera Net, "We have excellent capabilities for manufacturing steel coils, which are the main entrance to the manufacture of containers, and we also have an industrial system for the manufacture and processing of minerals with important capabilities and qualified and competent human resources."

The spokesman pointed out that Morocco is interested in investing in container manufacturing due to the imbalance between supply and demand caused by the lack of supply from China, so "the container industry project has been included in the Bank of Projects supported by the Ministry of Industry and Trade, which aims to download a project with a production capacity of 10,000 containers annually. ".

This industry mainly needs raw materials available in Morocco, such as steel coils and some parts of the foundry. These materials and parts - says Souiri - are produced locally with large production capacities and of high quality, in addition to that Morocco has a highly efficient industrial system at the level of processing steel and metals to localize container industry.

The shipping container industry mainly needs raw materials available in Morocco (Getty Images)

Chinese domination

China dominates the container industry, and global trade depends almost entirely on its production capabilities. During the first eight months of this year, Chinese manufacturers produced about 500,000 containers, an increase of nearly 64% compared to 2021, and 35% compared to 2020, and production is expected to reach the end of the year. To 900,000 containers, however, China could not meet the increasing global demand for containers.

Global demand for containers grew at a rate of 7.5%, exceeding supply for the first time in 2021, resulting in a global shortage of containers.

The United States and Europe are looking for suppliers, locally or in other parts of the world, to avoid total dependence on China for this vital element of trade.

Proceeding from this context, economist Nofal Naciri believes that Morocco's thinking of encouraging the container industry locally will turn it into a leading country at the regional level in this industry.

Al-Nasiri confirms to Al Jazeera Net that Morocco has all the capabilities that make it so, including its possession of industrial technology for mineral processing, the ability to manufacture steel coils and qualified human resources, in addition to the important strategic location that will enable it to turn into an export platform, especially since a number of major companies in The fields of manufacturing cars, aircraft and electronic chips have settled in Morocco, and investment in the container industry will cover their needs.

Morocco's availability of a strong infrastructure in the port sector enhances the chances of success of this industry, as it ranks first on the African continent in the maritime handling and loading sector.

Morocco has 14 commercial ports, including 9 major ports, the most important of which is the Tangier Med port, which is the largest port in Africa and the Mediterranean coast.

The Tangier Med port set a new record in the Mediterranean last year, handling more than 7 million containers.

China dominates the container industry and global trade depends almost entirely on its production capabilities (Getty Images)

Support and support measures

The development of the container industry in Morocco is closely related to the country's export dynamics and its logistical competitiveness, according to Souiri. Therefore, it stresses the need to put in place support and accompanying measures to localize this industry and support the development of its industrial system.

Al-Suwairi states that the current market size does not allow the absorption of all the national production of steel coils, so the development of the container industry will increase the size of this market and absorb the surplus production of the steel industry. It will also enable the promotion and development of a new industrial system that will give a new impetus to the mining sector and push it towards more export.

The mining sector constitutes an essential element in the economic and social development of Morocco, as it attracts investments estimated at 11.9 billion dirhams in 2020 (about one billion dollars), and its share in national exports is more than 21% in terms of value in 2020.

Regarding the economic impact of the container industry locally, Nofal Al-Nasiri explains that Morocco will be able to meet part of the increasing demand for it and for some African countries and nearby European countries or some European countries that have factories in the Kingdom, which will lead to raising the added value or the competitiveness of Moroccan exports in terms of time. time and cost.

On the other hand, Naciri says that such investment will encourage the local industry, which will allow to reduce the trade deficit and bring in the currency, and will lead to the creation of thousands of job opportunities. He expected that the container industry will constitute an added value for Morocco, which will enhance the growth of the local economy.