Israel Seeks to Seize Control of Major Bus Terminals from Nitzba

The Israeli government intends to transfer the management of Nitzba's central bus stations and parking facilities to the state-owned Ayalon Highways company. These facilities accommodate approximately 2,300 buses, representing about 22% of the public transportation fleet. The Ministry of Transport accuses Nitzba, a private company, of exploiting its monopolistic position and intentionally neglecting these crucial assets. The ministry estimates that bus operators pay Nitzba around 160 million shekels annually in rent, exceeding market rates.

Nitzba, which was established by the Egged bus cooperative and later acquired by Kobi Mimun, disputes these claims. The company argues that management agreements were signed decades ago and that the ministry itself underfunds and dictates service levels. Nitzba also states it continues to cover operational costs and incur losses during the transition.

The state's plan involves Nitzba retaining ownership of the properties but being compelled to lease them for public transportation use. This move comes as the Ministry of Transport identifies a significant need for new infrastructure, including terminals and night parking, and is promoting the development of new facilities nationwide.

The dispute has led to several legal actions by Nitzba against the state, seeking substantial sums for alleged unpaid dues and usage fees in various cities, including Tel Aviv, Kfar Saba, and Nahariya. In some locations, Nitzba has issued eviction notices, while in others, it seeks state co-investment in facility upgrades.

The government aims to gradually transfer management, starting with six stations by the first quarter of 2027 and completing the process by the end of 2028. This initiative is part of a broader effort to modernize and expand public transportation infrastructure across Israel, addressing a projected shortfall in necessary facilities.