Israel's Cross-Israel Highway Company Stalled Amidst Leadership Vacuum and Restructuring Debate
Cross-Israel Highway Company, a government-owned entity responsible for major transportation and infrastructure projects, has been operating without a permanent CEO for over a year following the resignation of Dan Shenbach in July 2025. The search for a successor has stalled, with no tender published for the position. This leadership vacuum coincides with a proposed structural reform by the Government Companies Authority (GCA) to merge Cross-Israel with Ayalon Highways and Netivei Israel, potentially transferring its operations to other companies. A decision on appointing a new CEO is unlikely before the upcoming elections, due to concerns about appointing a leader to a company whose future structure and operations may change.
While a job advertisement was published in June 2026 and candidates submitted resumes, the process has not advanced as a placement firm has not been appointed to manage the tender. The GCA's proposed merger, initially estimated to save NIS 80 million annually and later projected to save NIS 1 billion over five years, faces strong opposition from Cross-Israel. The company argues the merger would offer no operational benefits, could impair the management of mega-projects due to loss of expertise, and might only yield NIS 15 million in annual savings while risking hundreds of millions due to project management and negotiation issues. They also contend it would harm competition between government execution arms.
The Ministry of Transport opposes the GCA's restructuring plan, which aims to reduce the number of government companies. Despite the uncertainty, Cross-Israel continues to manage significant projects, including the financial closure of the Nofit light rail project (Haifa to Nazareth) and the northern extension of Highway 6, with Shapir recently winning the bid for the latter. Meanwhile, 120 Cross-Israel employees have unionized with the Histadrut labor federation, seeking to improve their employment terms and job security, and have requested negotiations for a collective labor agreement.
Cross-Israel stated that the permanent CEO appointment process has been delayed for over a year by the GCA for reasons beyond the company's control. The GCA responded that the appointment of a CEO in a government company must adhere to the Attorney General's directives and imposed restrictions during the election period. The Ministry of Transport confirmed that the GCA is handling the CEO appointment and the company's future, coordinating with relevant parties to ensure operational continuity and project advancement.
