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The Source for Public Transportation News and Analysis July 27, 2012
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Public Transportation Prospects in Israel
BY ALAN WIELUNSKI, Commercial Specialist, U.S. Commercial Service, Tel Aviv, Israel

Editor’s Note: The following outlines upcoming public transportation projects in Israel open to APTA members.

The rising standard of living in Israel, coupled with a significant growth in population, has led to a steady increase in the number of motor vehicles in the country, a growth in motorization level, and a rise in distance traveled.

During the last decade, the transport infrastructure investment to Gross Domestic Product ratio more than doubled, from 0.6 percent to 1.6 percent—one of the fastest growth rates recorded worldwide. This trend is expected to continue and further accelerate, with annual investment expected to exceed $3 billion through traditional budgetary resources and public-private partnerships (PPP).

Israel’s unique economic and demographic characteristics present a real challenge for policy makers. Thus, government policy emphasizes the expansion of public transport, mainly rail systems and mass transit systems, to mitigate the adverse effects of transport activities.

Israel Railways
Israel’s government views railways as a central means of mass transport that is both efficient and environmentally prudent. The train is also viewed as a means for reinforcing the connection between metropolitan centers and the periphery, improving standards of living, providing employment opportunities, increasing commuter mobility, protecting the environment, and providing sustainable development.

After many years of stagnation and a steady decline in passenger volume, Israel Railways has begun actively working toward bridging the wide gap between Israel and other developed countries in the use of rail travel. Since the mid-1990s, its passenger volume has grown rapidly (by more than 1,300 percent since 1990). It is expected that the annual number of passengers will increase from the current 35 million to some 60 million in 2015.

Rail Investment
In an effort to realize the immense potential inherent in the development of the rail system, both in terms of passengers and freight, the Israeli government decided in 2001 to transform the Railway Authority into a governmental company. This step, which facilitated the implementation of organizational efficiency measures, was accompanied by a government decision to invest $7 billion. Today, all Israel Railways projects are planned and managed by the Israel National Roads Company.

In February 2010, this effort was supplemented with an additional $5 billion program that aims to connect Haifa to Beit She’an and Acre to Carmiel—at a total cost of nearly $2 billion—and to convert the railway system from diesel locomotives to electric trains while renewing the rolling stock at a cost of about $3 billion in a multi-year program, to be implemented by 2016, to establish a rail connection between all major and medium-sized Israeli cities.

The government’s vision, as embodied in the multi-year development program, was to connect by rail the four major metropolitan areas (Jerusalem, Tel Aviv, Haifa, and Beer Sheva) and establish a suburban rail network in the Tel Aviv metropolitan area. Other major projects include an upgrade of the signaling system and initial steps for electrification of the network.

Here is an overview of two major projects, both in the planning stage:

* Eilat Railway: Eilat, a major tourist destination that lies at the southernmost tip of Israel, is also its southern gateway,, acting as the port of entry for goods from Southeast Asia, Africa, and Australia. Connecting Eilat by rail to the center of the country should significantly benefit international trade, tourism, and the development of Israel’s southern region. The project plan will be completed by 2016. Estimated cost: $5 billion.

* Eastern Railway Line: The planned Eastern Railway Line will operate alongside Road 6, the Cross Israel Highway. The line will run from Lod to Hadera and will complement the Coastal Line. It will be used to carry freight and passengers. The Eastern Railway Line is a strategic project due to its potential to incorporate an inland port, which will serve to transfer freight to and from the Haifa and Ashdod seaports. Estimated cost: $1 billion; expected to be built in cooperation with the private sector.

Mass Transit Projects
Israel is predominantly urban (93 percent of the population lives in towns with more than 20,000 inhabitants). Planning policies continue to encourage high-density urban development capable of supporting public transport. Additionally, in recent years special bus lanes were constructed throughout urban centers to enable its free flow.

Specific projects of mass transport are in planning and implementation stages in the urban metropolitan areas of Tel Aviv, Jerusalem, and Haifa.

NTA (Metropolitan Mass Transit System) is an advanced mass transit system that will enable development of the Tel Aviv metropolitan area to continue to develop and to provide adequate access to the city center. After years of planning, preliminary work has begun on the first line. The light rail, which will travel above ground and underground at high speed and high frequency, will connect central Tel Aviv to large urban centers. For detailed information about NTA tenders, please click here.

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