Major Bus Tender for Modi'in Area Excludes Egged
Translated & summarized from Calcalist by baba
The story in 5 lines · by baba
- A new tender for bus services in Modi'in excludes Egged due to monopoly status.
- The exclusion is based on exceeding operational limits set by the Competition Authority.
- The tender involves a fleet upgrade to 207 new buses, including electric models.
- Infrastructure upgrades and route enhancements are part of the plan.
- The cluster is being split into two, with competition rules preventing one winner from taking both.
The National Public Transport Authority is set to release a new tender for operating bus services in the "Hasmonean" cluster, which includes Modi'in and Modi'in Illit. The current operator, Kavim, is expected to be replaced by a new provider within 12 to 18 months of the contract award. Notably, Egged, Israel's largest bus operator, has been barred from participating in this tender, as well as a supplementary tender for the Ramla, Lod, and Beer Yaakov area. This exclusion stems from a decision by the authority, based on recommendations from the Competition Authority, which declared Egged a monopoly and set a cap on its operational scope. The Hasmonean cluster alone requires operating approximately 26 million kilometers annually. Egged's participation would exceed the 35 million kilometer annual limit set by the Competition Authority, especially after it won a tender for the western Jerusalem envelope area in June 2023, leaving it with only about 20 million kilometers within its limit. Egged's request to raise the limit to 46.4 million kilometers was denied by Idan Moalem, Director of the Public Transport Authority, who stated that any change would require a government decision and that the existing limit was not intended to be tied to industry growth. Moalem emphasized the need to open the market and prevent monopolies to improve public transport services.
The new tender conditions for the Hasmonean cluster include a 10% increase in operational scope, route adjustments, and enhanced connectivity. The bus fleet will expand by about 10% to approximately 207 new urban buses, including electric and articulated models. These buses will feature all-door boarding, accessibility for people with disabilities, and physical separation for the driver's cabin. The Ministry of Transport will also fund infrastructure upgrades, such as electrical systems for the new buses and improvements to bus stops and shelters. This tender is part of a plan to split the existing cluster into two: "Hasmonean" (Modi'in and Modi'in Illit) and "Ramlod" (Ramla, Lod, and Beer Yaakov). However, to maintain competition, the winner of one tender will be ineligible to win the other.