Israeli public transportation company Kavim has joined forces with German company Deutsche Bahn and Connect Jerusalem Light Rail Train (LRT) in order to compete for the operation of the Tel Aviv area light rail red line. Kavim will own 50.1% of the new group, Deutsche Bahn 34%, and Connect Jerusalem 15.9%.
The tender to operate the light rail was renewed in late December, after having been frozen for several months. NTA Metropolitan Mass Transit System Ltd. received requests to reduce the minimum holding by foreign partners from 51% to 30%. The groups must file their bids by March 23.
Mayer's Cars & Trucks and Horn & Leibowitz own Kavim in equal shares. The company, which operates 1,200 buses in Israel and a line of shuttle taxis between Jerusalem and Tel Aviv, will be responsible for operating the red line if the group wins the tender.
Deutsche Bahn is the world's leading public transportation company, with 4.2 billion passenger journeys, mostly on railways. It will provide the international know-how for the red line. Connect Jerusalem operates the Jerusalem light rail, and will contribute its local knowledge.
In addition to this group, it was also reported that Dan Public Transportation would complete in the tender in combination with French railways company SNCF and Beijing Subway. Dan and SNCF, which are also partners in the Metronit project in Haifa, will have a 49.9% joint stake in the group, while Beijing Subway will have 50.1%.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 12, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
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