Transport

The Ministry of Transport (MoT) has launched a national master plan for interurban and suburban transport infrastructure. Airport infrastructure projects involve building of a new terminal for private and business flights at the Ben Gourion International Airport. The terminal operator would work under a franchise, with no ties to service providers on the ground, paying royalties to the Israel Airports Authority (IAA). Cost is estimated at NIS 4.3 million. Other projects include the transformation of Haifa Airport into an international airport (at a cost of NIS 2 million) and construction of the new Timna Airport near Eilat. The BOT tender should be published in 2006 for start up in 2010.

In the field of rail transport, a five-year plan called “Railways 2000” was launched in 2002 to facilitate the country’s network. The objective for 2010 is to reach 40 million passengers and 15 million tons of goods. The “Suburban Railway” project seeks to improve and modernise the existing network and build new lines, to be integrated in a network that would consist of 1230 km of rails by 2010. There are also important needs for railway equipment and electrification, likely to require some 25 percent of investment.

As for roads, the Israel National Roads Company has a budget of $19 billion, to be used over the next five years for development of new roads, renovation of existing roads and better road safety. For road construction, the government generally provides land for private consortia (local and foreign companies) to work under BOT arrangements.

The 2004 Port Reform allowed the three principal Israeli ports of Haifa, Ashdod and Eilat to accede to autonomous management through the Israel Ports Development & Assets Company (IPC). Overall, merchandise traffic at Israeli ports came to 37.5 million tons of goods in 2005. The government’s objective is to reach 65 million tons by 2010, thanks to investment in modernisation, especially at Haifa and Ashdod. The cost of this initiative is estimated at $2.1 billion over 10 years.

The Eitan terminal (Port of Jubilee) in Ashdod was officially inaugurated on 2 August 2005. It is intended to increase capacity for deep-water cargo liners and to improve the transfer of goods, at a cost estimated at $638.32 million. Some 14.5 million tons of goods (potash and all agricultural products) went through the port of Jubilee in 2004. There are also plans to equip the port of Haifa with a railway connecting it to inland areas and bordering countries, often the final destination for commercial traffic entering the port. An extension to the Palestinian Territories is envisaged and a multimodal transport system is also planned between Carmel and Haifa. Some NIS 3 billion is expected to be invested in the development of the port of Haifa over the next five years, in particular construction of the first part of the port of Carmel and extension of the quays. Work began in August 2005 and should continue until 2008.

Beyond these two major undertakings, IPC plans to inject $1.06 million in other projects, mainly for the development of already existing infrastructure, in particular extension to the north of the Port of Eilat. It should be noted that there is no local production of materials for public works, which must therefore be secured entirely through imports. Expenditure for public works machinery and equipment amounted to EUR 40 million in 2002 (mainly tractors, cranes, winches, scaffolding, concrete mixers, bulldozers, excavators, lifts, escalators, trailers, etc).

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