Israel Railways ups capacity with 78 new cars

Bombardier was left as the only competitor in the Israel Railways tender.

Bombardier will supply Israel Railways with 78 double-decker train cars, which will allow Israel's train company to increase its seating capacity by 10,000 places.

The deal, worth NIS 700 million, was signed after negotiations that lasted several months, after Bombardier was left as the only competitor in the Israel Railways tender.

At the same time, the tender for 15 diesel electric locomotives, and an option for an additional 8, continues. That tender is worth NIS 300 million, without the option. Bombardier is competing in the tender against European manufacturer Vosloh.

The current deal is the first one signed for new cars since 2006. During that time, the number of train passengers grew by an average rate of about 15% per year. The growth prompted Israel Railways to push for the supply of the cars as soon as possible. According to an agreed-upon timetable, the new cars will be supplied in stages, beginning in November, 2011, through April 2012.

The news cars are slated to meet rising demand ahead of new lines, and doubling of existing lines, chief among them the Tel Aviv-Beersheva line. The main new line opening in the next year is the Tel Aviv-Rishon Le'Zion west line, which is expected to carry about 3-5 million passengers per year. The line is set to begin operating in May, 2011.

Published by Globes [online], Israel business news - www.globes-online.com - on October 10, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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