Egged faces electric bus competition in Haifa

Haifa is planning a large-capacity electric bus route.

The Haifa municipality is bucking the trend set by Jerusalem and Tel Aviv; instead of building expensive light railway lines, it will establish a large-capacity electric bus route, the Metronit, set to begin operating in 2010.

Sources inform ''Globes'' that the Ministries of Finance and Transport have approved the NIS 750 million prequalification tender for the procurement of equipment and operation of large-capacity electric buses. The tender was published ahead of the expiration of Egged Israel Transport Cooperative Society Ltd.'s exclusive franchise to operate public transport in Haifa in early 2009. When the franchise expires, private bus operators will be allowed to operate in the city.

As things stand at the moment, Egged will be able to participate in the bus rapid transit (BRT) through a subsidiary. If the company loses the tender, it could lose market share to a private operator. Transport industry sources believe that if Egged wins the tender, it will be forced to forego some bus routes in Haifa because the BRT tender stipulates especially high service levels.

The main Metronit line will run for 20 kilometers from Bat Galim through the lower city to Haifa Bay. Later, a second line will link Hadar Hacarmel with Kiryat Ata. This stage of the project has not yet obtained financing.

Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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