Morocco Commences Port Expansion, Promises Tax Breaks

by Mary Swire, Tax-News.com, Hong Kong

22 June 2009

Morocco is to forge ahead with plans to expand its Tanger Med port complex, it has been announced.

The start of the MAD9.25bn (USD1.14bn) project was marked by the country's King, Mohammed VI, in an official ceremony on June 17.

Once complete, the expansion will make the Tanger-Med port the largest in the Mediterranean area, enabling it to process up to 8 million containers travelling through the Strait of Gibraltar on an annual basis.

Alongside the port development, the government is constructing a number of business parks eligible for tax breaks.

Phase one of the port's construction is expected to take until 2014 to complete and will cost in the region of MAD7.25bn (USD899m). Phase two will reach completion by 2016, and although this will finalize the expansion project, the port will only be launched under the appropriate market conditions.

Moroccan Equipment and Transport Minister, Karim Ghellab, commented:

"It will be the biggest port in the Mediterranean ..., a door to Europe and to international markets, be they European, Asian or American."

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