Israel Signs $7.4 Billion Deal to Boost Public Bus Ridership
Translated & summarized from Calcalist by baba
Israel's National Public Transport Authority signed a NIS 28 billion agreement with bus operators to incentivize increased ridership by changing payment models. The deal extends concessions by four years for companies meeting service goals and aims to boost competition by excluding major players like Egged and Dan. This initiative seeks to address the ongoing public transport crisis characterized by congestion and service issues.
The story in 5 lines · by baba
- Israel's National Public Transport Authority signed a NIS 28 billion deal with bus operators.
- The agreement incentivizes operators to increase passenger numbers by changing payment models.
- Concession periods for participating companies will be extended by four years, pending performance.
- Major operators Egged and Dan are excluded from the new regulatory agreement.
- The deal aims to improve service and address the ongoing public transport crisis.
The National Public Transport Authority has finalized a groundbreaking industry-wide agreement with public bus operators valued at approximately NIS 28 billion (about $7.4 billion). The deal aims to overhaul the existing remuneration model, allowing for the streamlining of inefficient routes and the reallocation of services to more congested areas. In parallel, the concession periods for participating companies will be extended by four years, contingent upon meeting specific service metrics.
The new regulation is designed to foster greater competition among operators. Consequently, major companies like Egged and Dan, which dominated the market until the early 2000s, are excluded. Extra and Tnuva, companies that were recently summoned for hearings due to failing to meet targets, are also not included. The Authority intends to bolster smaller operators and assist them in navigating recent challenges, including the economic impact of the COVID-19 pandemic and military operations.
This agreement follows nearly two years of negotiations led by Idan Moalem, the Head of the National Public Transport Authority. The revised payment structure will link a portion of the companies' compensation to the number of passengers served, rather than solely to the distance traveled. This incentivizes operators to improve service quality and encourage greater public transport usage.
Under the new framework, service maps will be updated, low-demand routes will be reduced, and resources will be redirected to bolster busy routes and expand services in high-demand zones. The Authority also plans to expedite tender processes for operating routes to maintain competition. The four-year extension of concession periods is conditional on meeting service levels and passenger targets.
The agreement comes amid a persistent crisis in public transportation, marked by traffic congestion, driver shortages, schedule unreliability, and a heavy reliance on private vehicles. While the agreement has been welcomed as a positive first step, advocacy groups emphasize the need to further align operators' business interests with public service quality, ensuring that company success is also measured by reliability, accessibility, and passenger growth.
Mentioned
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Other 2
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
