Israel Railways issues NIS 3b electrification tender

Israel Railways

The tender includes the electrification of 420 kilometers of railway tracks.

Israel Railways has published a NIS 3 billion tender for the electrification of railway infrastructure. The tender is part of the railway electrification project, which is estimated at NIS 13.7 billion. The infrastructure tender includes the electrification of 420 kilometers of existing and planned railway tracks, construction of electrical substations, as well as the control and command stations required for the electrification of the tracks.

The first lines to be electrified are the high-speed train to Jerusalem, and the Akko-Karmiel line, both of which are currently under construction. The companies that won the previous railway track electrification tender are entitled to participate in this tender, including Alstom, and Siemens.

The Israel Railways inter-city system is currently powered by diesel, while in most countries inter-city trains are electrically powered. Electric trains shorten travel times significantly, reduce malfunctions, and reduce emissions. Electric trains are considered more reliable, and more economical. Under the electrification project, Israel Railways published a tender last July for the purchase of 62 electric locomotives, with an option to buy 16 more. Bids for this tender may be submitted until next week.

Another tender is expected for this project in the first half of 2015 - a tender for the purchase of electric multiple units (EMUs). This tender and the tender published yesterday are among the electrification project’s three mega-tenders.

Israel Railways CEO Boaz Tzafrir has said that the electric trains are essential for the Israel Railways development plan, to double the number of trains that run each day, and to provide service to twice as many customers. “In the past year, the project has been accelerated, and the advertisement of the mega-tenders has begun. I have no doubt that from this point forth we will see an increasing rate of progress on this project, until it is implemented in the high-speed train to Jerusalem in early 2018.”

Israel Railways subsidiary seeks CEO

Israel Railways announced yesterday that a process is underway to find a CEO for a subsidiary that will handle the commercialization and development of the railway station areas. The subsidiary was established in 2014, following a government decision. The subsidiary is to be responsible for the existing services at the stations, creating partnerships with business sector parties specializing in real estate development, and advancing plans between Israel Railways and the Israel Land Authority (ILA). Israel Railways estimates that the subsidiary will have NIS 400 million in annual revenue, which will lead to a reduction in governmental assistance. The profit from these activities will go towards development. The subsidiary is expected to employ just 10 workers, and will be fully owned by Israel Railways.

Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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