Israel Seeks Control of Major Bus Terminals Amid Neglect Claims

Israel's Public Transport Authority is moving to take over the management of 17 major bus terminals and nine parking facilities currently operated by the private company Natsba. The government aims to transfer these assets to the state-owned "Nativ Ayalon" company, citing Natsba's alleged deliberate neglect of facilities, monopolistic practices, and numerous financial disputes. The Ministry of Transport also accuses Natsba of preventing access to parking lots for bus operators other than "Egged."

Natsba controls approximately 22% of the country's bus terminals. Due to the lack of alternative facilities for some locations, the state is considering using a provision in the Transportation Ordinance to compel Natsba to continue leasing the properties at a price determined by the Ministers of Transport and Finance, a measure previously employed in Jerusalem.

A phased handover is planned, with management of terminals in Be'er Sheva, Netanya, Afula, Tzfat, Nahariya, and Akko to Nativ Ayalon scheduled for the first quarter of 2027. Lease agreements are expected to be updated by the fourth quarter of 2027, with the remaining terminals to be regulated by 2028.

Additional measures are being explored, including establishing a new state-owned terminal in Ashkelon, a pilot program for shared maintenance responsibilities in Ashdod, and separating transport and commercial uses in Jerusalem and Netanya in exchange for increased building rights. The Ministry of Transport estimates Natsba's annual revenue from transport operators at around NIS 160 million, claiming the lease fees paid to Natsba exceed market rates.

Natsba disputes these claims, stating that the management budget allocated by the Ministry of Transport is significantly insufficient. The company asserts it reached an agreement and completed a full handover to Nativ Ayalon a year and a half ago, but the Ministry of Transport has delayed the transition due to budgetary disagreements with the Treasury, causing Natsba to incur losses. The Public Transport Authority confirmed that mediation has been ongoing for two years to improve service, cleanliness, and maintenance standards, and to resolve financial disputes without lengthy legal proceedings.