Dan Acquires Tnupha Amid Public Transport Crisis
Translated & summarized from Walla by baba
The Dan company will acquire the struggling public transport operator Tnupha for approximately 150 million shekels, following years of service failures and a 80 million shekel fine from the Ministry of Transport. Tnupha's poor performance, including frequent cancellations and delays, has caused widespread public dissatisfaction. Dan's acquisition is seen as a necessary step to resolve the crisis affecting hundreds of thousands of Israelis, though further approvals are pending.
The story in 5 lines · by baba
- Dan is acquiring the failing public transport company Tnupha for 150 million shekels.
- Tnupha faced significant operational failures, including over 20% non-performance and chronic delays.
- The Ministry of Transport fined Tnupha 80 million shekels but did not revoke its concession.
- Dan will need to purchase 100 new buses to replace Tnupha's existing fleet.
- Ariel Mayor Yair Shtaboun stated the sale is a start, demanding reliable service for residents.
The Dan company is set to acquire Tnupha, a public transportation company that has faced significant operational failures, including over 20% non-performance rates in some areas, chronic delays, and unannounced cancellations. These issues have severely impacted public transport services in the Samaria and Beit Shemesh regions, leading to difficulties in driver recruitment and highlighting management and oversight failures by the Ministry of Transport.
Despite repeated appeals from local authorities, transport activists, and passengers, the Ministry of Transport, under Minister Miri Regev, and the Public Transport Authority, headed by Idan Moalem, failed to implement effective solutions or revoke Tnupha's concession. The company's controlling shareholder, Itzik Koifman, has agreed to sell Tnupha to Dan for approximately 150 million shekels, a sum reflecting the substantial investments required by the new owner.
Dan, led by CEO Ofir Karani, will need to purchase around 100 new buses to replace Tnupha's problematic Chinese Wisdom buses. Tnupha will continue to operate as a subsidiary of Dan. In exchange for rescuing Tnupha, Dan is expected to seek an extension of its existing concessions from the Ministry of Transport.
The deal requires approval from Tnupha's other owners, some of whom have outstanding financial claims against Koifman due to bus malfunctions causing significant losses. Approval from the Public Transport Authority and the Government Companies Authority is also necessary. This acquisition comes after a previous negotiation for Tnupha's purchase by Metropolis fell through, leaving few immediate options to resolve the crisis affecting hundreds of thousands of Israelis.
Ariel Mayor Yair Shtaboun expressed that while the sale is a positive development, it is only the beginning. He emphasized that residents of Ariel and Samaria deserve reliable and quality public transportation, expecting the new management to bring about tangible improvements.
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