Israel Seeks State Control Over Key Bus Terminals

The Israeli Ministry of Transport intends to transfer the management of 17 central bus terminals and nine bus stops and depots from the private company "Nitzba" to state control. This move does not involve nationalizing the real estate; "Nitzba" will retain ownership of the buildings, but the state-owned company "Netivei Ayalon" is slated to take over the management of the transportation infrastructure. The government argues that critical transportation infrastructure should not be dependent on a private owner, a concern that has become particularly acute where bus terminals lack viable alternatives for route relocation.

The Ministry of Transport claims "Nitzba" has gained excessive influence over public transport operations. The company controls 17 central terminals and nine additional sites covering approximately 300 dunams, capable of accommodating around 2,300 buses, representing about 22% of Israel's public transport bus fleet. The dispute centers on infrastructure vital to a significant portion of the country's bus network. The Ministry also alleges that some facilities were poorly maintained and that "Nitzba" has demanded the vacating of premises or cessation of use without providing state alternatives.

"Nitzba" disputes these claims, stating that facility conditions and service levels are influenced by the Ministry's budgets and requirements, and that external management companies working directly with the Ministry operate the stations. The infrastructure generates substantial revenue, with "Nitzba's" income from public transport operators estimated at approximately 160 million shekels annually. The Ministry believes some rental fees exceed market rates, while the company contends that current tariffs are based on old agreements and do not adequately cover expenses. "Nitzba's" parent group, Airport City, valued its transportation real estate at about 1.6 billion shekels, with rental income of 132 million shekels in 2025, yielding an NOI of around 76 million shekels after expenses.

The conflict, ongoing for several years, has led to legal disputes. "Nitzba" group companies have filed financial claims against the state totaling tens of millions of shekels for various terminals, including around 100 million shekels for Tel Aviv, 30 million for Kfar Saba, 18 million for Nahariya, and 10 million for Tiberias. Some disputes involve demands for vacating premises or state co-financing of investments. While mediation is underway for broader disagreements, the state fears that the cessation of terminal use could jeopardize bus routes due to a lack of suitable replacements.

Historically, "Nitzba" was established in connection with the "Egged" bus cooperative to own property used by the company. Key lease agreements date back to 1995. Following public transport reforms, other carriers began using the infrastructure, with the Ministry of Transport gradually regulating space allocation and payments. Notably, lease agreements for six stations expired in 2014, yet operations continued amidst ongoing financial disputes, creating a situation where the transport system relied on infrastructure with unresolved legal and financial terms.

In specific instances, the Ministry of Transport has invoked Article 16b of transportation law, allowing it to compel property owners to open facilities for public transport use, with compensation, if necessary for the system's operation. This mechanism has been applied to stations in Ashdod, Ramle, Rishon LeZion, and Hazor. The state is considering this option elsewhere if agreements cannot be reached, asserting its ability to ensure transport use and determine financial terms without necessarily owning the buildings.

The initial plan involves transferring management, not immediate route changes. By the first quarter of 2027, "Netivei Ayalon" is expected to manage terminals in Be'er Sheva, Netanya, Afula, Safed, Nahariya, and Acre, with a phased rollout to other sites by 2028. The primary impact for passengers is intended to be a shift in responsibility towards prioritizing the bus network's functionality over individual property profitability. However, the valuable land occupied by central bus terminals presents a challenge, as owners may have economic incentives to redevelop sites for housing or commerce, potentially jeopardizing bus operations.

This dispute is part of a larger effort to restructure Israel's public transport management model. Public transport usage is growing, with 781 million validated bus trips in 2025, a 1.4% increase. Israel faces a deficit of approximately 500 dunams in terminal and overnight parking space. The state plans to develop hundreds of new transport infrastructure facilities, including electric bus charging stations. For "Nitzba," this means losing management control of key assets while retaining ownership. For the state, it offers direct control over strategically vital infrastructure. The central question remains whether a state-run model will effectively address terminal conditions or simply shift conflicts internally.

Negotiations and mediation are ongoing. The transfer of the first six stations to "Netivei Ayalon" is scheduled for early 2027. A journalistic clarification indicates that while the state seeks control over operations, ownership of buildings and land remains with "Nitzba."