Israel Rail Faces Leadership Void Amid Management Challenges and Project Pressures

Israel Rail is currently operating without a permanent CEO or board chairman, marking an unprecedented leadership vacuum in recent years. Moshe Shimoni, who chaired the company for nearly six years, stepped down after being appointed chairman of Mekorot, Israel's national water company. Meanwhile, almost a year has passed since former CEO Moshe (Shiko) Zana left, and no permanent replacement has been found. Abner Flor, former head of infrastructure at the Ministry of Transport, is serving as acting CEO.

The search for a new CEO has encountered significant difficulties. An initial recruitment process ended without a candidate selection despite 12 finalists, as none gained the committee's trust. A second search is underway, including outreach to CEOs of major government companies, but so far there is little interest. Industry insiders describe the role as one of the most challenging in the public sector due to the company’s size, complex infrastructure projects worth tens of billions of shekels, strong labor unions, frequent operational issues, safety incidents, and intense public and political pressure.

Recent years have seen turmoil within Israel Rail’s management, with two CEOs departing amid conflicts with labor unions and criticism over project delays, including the electrification initiative. Several senior executives have also left or been reassigned following serious freight train incidents. Sources told ynet that many potential candidates avoid the role, fearing blame for systemic failures and the difficulty of enacting meaningful change. One official warned that it is "only a matter of time before a disaster occurs," citing patchwork solutions and lack of long-term planning.

Despite not officially serving as CEO, Shimoni remained the key figure managing the company behind the scenes last year. Israel Rail must now complete the electrification project, prepare for new line openings, and handle growing passenger volumes without stable leadership. A senior company official told ynet that operating without a chairman and CEO is "a crazy task," and that acting CEO Flor struggles to manage union politics.

The leadership crisis also presents an opportunity for organizational renewal. Israel Rail is at a critical juncture with major expansion projects and service improvements underway. Strong management could drive cultural change, enhance service quality, and improve operational reliability. The company emphasized its robust management team, combining experienced transportation professionals and recent appointments from the public and private sectors.