Connection of the railway network to the neighboring States
The layout of the lines mentioned below have been agreed with the neighboring States as a part of creating the future railway network of the Middle East Region. Its realization will serve as a basis for the implementation of joint international projects.
Beer Sheba - Aqaba (Zin Elate), The estimated cost is $US 200 million ( in Israel).
Ashkelon - Gaza Line, The estimated cost is $US 30 million

Freight Line
Beer Sheba - Ramat Hovav, The estimated cost is $US 50 million.

General Information
The main railway lines of Israel Railways include the following: main line - 570km, branch lines - 336km, i.e. the full length of the lines reach 906km. 43 trains travel daily between Haifa and the North of Tel-Aviv, and two trains travel to and from Jerusalem daily. In the suburban railway lines, there are 19 trains on the Tel-Aviv - Rehovot route, and 58 trains on the Nnetanya - Tel-Aviv route daily. 18 trains operate on the Haifa - Nnaharia route. Israel Railways has 48 locomotives (line and shunting), 88 passenger cars, 11 DMUs (each comprising three cars) and approx. 1400 freight cars, of which about 500 cars are owned by clients.

Passenger Traffic According to line
(Thousands of Passengers)

In 1995, about 5.8 million passengers rode on the railways, which is an increase of about 16% compared with 1994. A remarkable success was noted in the suburban lines, Tel-Aviv - Netanya and Tel-Aviv - Rehovot, in which a growth of 30% and 40% was attained respectively.

This growth is particularly outstanding considering the general decrease in commuters using public transport. A significant improvement was felt in the quality of service.

Following the renovation of old cars, incorporation of power cars for air-conditioning and the further incorporation of modern DMUs. 9.4 million tons of freight were transported by train in 1995, an increase of approx. 6% compared with 1994, when 8.9 million tons of freight were transported. There was a decrease in the amount of mineral ore transported by train as a result of a decrease in the export of ore from Mediterranean ports. However, a significant increase (23%) was noted in the transport of containers, and thus the railways contributed significantly to withdrawing heavy trucks from the roads.

Israel Railways employed 1332 workers on a permanent and temporary basis.

The Authority has mapped out a detailed plan for developing the railway network which by the end of the century will allow the country's rail system to cope with the challenges of mass passenger and cargo transportation.

The goals behind the Israel Railway Authority's plans to develop the train system are:

Comparative Figures:

The battle over the largest railway project in Israel over the coming years, construction of the Tel Aviv-Kfar Sava line, began last week from an unexpected direction - Minister of Finance Avraham Shochat. In coordination with the Ministry of Transport, Shochat decided to award Cross Israel Highway the construction and operation of the project, which will be erected under the Build Operate and Transfer (BOT) system.

The decision constitutes a milestone in the infrastructures sector in Israel. It will mark the first time that a railway project will be constructed by private developers, and not be financed from the State budget. The Ministry of Finance is of the opinion that only private developers will be able to implement a project on this scale, in which the investment will total NIS 900 million.

Ministry of Finance sources told "Globes" that Israel Railways management and workers have an obvious interest against the project being done under the BOT method. According to the sources, the Public Works Dept. was also not entrusted with the Cross Israel Highway, due to the obvious interest of the workers in opposing the entry of private developers. The sources said that the conflict of interests involved in the railway project is even more serious, since the workers are connected to every railway project.

The State is expected to participate in costs involved in infrastructures, so that the project is worthwhile for private developers. This was also recommended by foreign experts, who examined the matter for the Ministries of National Infrastructures and Finance. The investment in infrastructures is estimated at NIS 400 million, while investment in equipment is estimated at NIS 500 million.

Israel Railways general manager Amos Uzani has spoken a number of times in recent years against the feasibility of including private developers in railway projects, claiming that developers have no chance of profiting from these projects. He predicted that this would create future problems for the country, because the developers would demand government subsidies after being entrusted with implementing the project. Uzani's position apparently persuaded the heads of the Ministries of Transport and Finance to entrust the Tel Aviv-Kfar Sava project to Cross Israel Highway.

Israel Railways workers said that they are the only ones capable of properly executing railway projects, and that they would wage a serious struggle against the decision.

Israel Railways management responded: "We were not involved in the decision. As far as we know, only a feasibility study is involved. From our point of view, we are continuing work as usual, and in two weeks will inaugurate the Tel Aviv-Rosh Ha'ayin line, which constitutes part of the railway project, in which we have invested NIS 100 million. We do not oppose the BOT method for projects in principle, and support in depth economic studies in the matter, including for the Tel Aviv-Kfar Sava line."