Israel Approves Fuel Line Relocation for Coastal Railway Expansion

After two years of disputes, Israel's Infrastructure and Planning Committee, headed by Ministry of Finance Director General Israel Malachi, has ruled in favor of advancing the expansion of the coastal railway line. The committee ordered the Israel Railways and fuel companies Paz and Sonol (Tatal 65a) to proceed with relocating fuel lines, even if land rights and financial disputes remain unresolved. The decision mandates that the parties sign execution agreements within 30 days, without making the work contingent on finalizing land rights or additional payments.

The conflict centered on the need to move fuel lines obstructing the railway expansion project, which was approved in December 2023. Despite attempts at coordination since then, disagreements persisted. Israel Railways approached the committee in June 2024 to mediate.

A key dispute with Paz involved whether pipeline relocation could begin before securing rights to the alternative land, particularly a kilometer-long section crossing private property. Paz feared insufficient proprietary protection if relocation preceded land rights registration. The committee rejected Paz's claim of non-jurisdiction, citing the public interest in national infrastructure development and accepting the railway's argument that delays could disrupt the project. An engineering control company warned that without timely agreements, the projected mid-2028 completion of infrastructure work might not be met.

The committee instructed the railway and Paz to sign agreements for already-agreed sections within 30 days, without waiting for land rights registration. Israel Railways must also submit necessary documents for expropriating easement rights within 60 days and complete the registration within a year.

A separate dispute with Sonol concerns additional payments for engineering management and supervision of the relocation. While some additional costs were agreed upon, disagreements remain over management and supervision fees. The committee did not rule on the exact amount but ordered agreements to be signed within 30 days regardless. Another unresolved issue is responsibility for testing potentially contaminated soil from abandoned old fuel lines, with the committee allowing for separate arbitration on this matter.

While not resolving all disputes, the decision aims to prevent further project obstruction. The focus now shifts to whether the parties will adhere to the deadlines and if the mid-2028 infrastructure completion target can be maintained. Malachi stated the decision prioritized removing obstacles and accelerating national projects for the benefit of public transportation users.