Israel's Transport Authority Seeks Control of Key Bus Terminals from Private Firm

Israel's Public Transport Authority is demanding the state take control of 17 central bus terminals and nine parking lots currently operated by the private company Nitzba. The authority, led by Idan Moalem, accuses Nitzba of deliberately neglecting these vital public transportation infrastructures and exploiting its monopolistic position. The dispute intensified after Nitzba filed multiple lawsuits against the state, seeking hundreds of millions of shekels in compensation and demanding the evacuation of some terminal sites, despite the lack of viable alternatives for the state.

The Ministry of Transport alleges that Nitzba has been leveraging its control since 2021, filing lawsuits while simultaneously neglecting the facilities it manages. The state argues that these terminals are essential public transport infrastructure and should not be dependent on a private owner. Consequently, the Public Transport Authority plans to transfer their management to the government-owned company Ayalon Highways.

Nitzba, which owns the terminals and parking lots spanning approximately 300 dunams and accommodating about 2,300 buses, claims the state's management agreements are decades old and underfunded, dictating a low standard of service. The company also states it has been cooperating with the transition to Ayalon Highways for 18 months, but the ministry has delayed taking actual control, leaving Nitzba to finance operations and incur significant losses.

The conflict involves numerous legal claims, including Nitzba demanding approximately 100 million shekels from the state regarding Tel Aviv's central station and 30 million shekels for the Kfar Saba station. The state is considering using a legal clause to compel Nitzba to continue leasing facilities, particularly in cities like Jerusalem, where Nitzba has attempted to vacate terminals or significantly increase rental fees, citing potential conversion to more profitable residential and commercial use.

The Public Transport Authority aims to reduce dependence on Nitzba, with a phased plan to transfer management of terminals in cities like Beersheba, Netanya, and Acre to Ayalon Highways by the first quarter of 2027. The process is contingent on reaching an agreement through mediation to prevent further lawsuits. The authority also stated that while they have ongoing disputes with Nitzba regarding service levels and payments, they are working to improve conditions and avoid lengthy legal battles.