Israel Railways to buy cargo rolling stock for NIS 130m

Israel Railways: The objective is to double cargo capacity within five years, from seven million tons a year to 13.5 million tons.

Israel Railways will procure cargo rolling stock for NIS 130 million, after obtaining permission from the Ministry of Finance and Ministry of Transport. It will buy 12 used locomotives and 162 flatcars, which will increase its locomotive fleet by 30% and boost its cargo capacity to 300 containers a day.

"The objective is to double cargo capacity within five years, from seven million tons a year to 13.5 million tons, and to triple the company's market share of cargo haulage from 8% to 25% by the end of the decade," said Israel Railways in a statement.

During 2013, Israel Railways plans to increase its revenue from cargo by 15% from NIS 130 million to NIS 150 million.

"Israel Railways currently has only 4-5% of the cargo haulage market, and 8% of the container haulage market," said Israel Railways CEO Boaz Zafrir. "I believe that with the right investment in this sector, we can triple our activity within a few years, thereby greatly boosting the company revenue, while simultaneously taking thousands of trucks off the roads, which will reduce traffic accidents and air pollution."

Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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