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Over the last three years, the government, in accordance with its policy of re-ordering national priorities, has sought to greatly expand the country's physical infrastructure, as a means to facilitate economic growth through increased efficiency and productivity.

Introduction
Highway Number 6 - The Cross Israel Highway
Israel Railway Authority -
Development Plan for the Year 2000
Mass Transit System for the Metropolitan Area of Tel Aviv-Yafo
Expansion Plans for Israeli Ports
Conclusion

Introduction

Over the last three years, the government, in accordance with its policy of re-ordering national priorities, has sought to greatly expand the country's physical infrastructure, as a means to facilitate economic growth through increased efficiency and productivity. This emphasis has led to unparalleled levels of investment, between 1993 and 1995 alone total public sector infrastructure expenditure will have reached around $8 billion. This level of infrastructure investment has contributed to employment opportunities, both directly and indirectly.

Among the larger projects under discussion are:

  1. The construction of a cross Israel highway;
  2. The expansion of the Israeli railway into an efficient and effective transportation network;
  3. The development of a mass transit system for the Tel Aviv metropolitan area;
  4. The expansion of the main Israeli ports in order to make Israel's foreign trade position more competitive.



Highway No. 6 - The Cross Israel Highway

One of the main problems facing the country's road network is the high level of vehicle density on the roads. Although at present Israel's vehicle motorization is only half that of Western Europe's, vehicle density is among the highest in the world. Moreover, based on present annual traffic motorization growth rates - of between 6-7% per annum - within the Next ten years there will be some 2 million motor vehicles on the road compared to over 1.4 million today.

The idea of a main traffic artery to the east of Israel's central metropolitan area, stretching from north to south, was first conceived in the 1970s. Although the concept of such a highway was often raised few concrete steps were taken to examine the reality of such proposals.

Finally, however, in 1990, a comprehensive study was commissioned. The study indicated that the construction of a cross Israel highway was an essential component in dealing with, as well as easing, Israel's worsening traffic problems.

In 1992 the Government designated the construction of a cross Israel highway as a national priority and consequently established the Cross Israel Highway Company. The sole purpose of the company is to promote the implementation of the project in order to contribute to the overall solution to Israel's transportation problems.

Highway number 6, as presently proposed will be made up of three sections: The first stage would be in the central region of the country, the road would extend from Yad Binyamin near the Port of Ashdod, to the Iron region on the main route to the Galilee. In total the length of the first stage of the road will be approximately 90 kilometers. The southern phase will expand the road from Yad Binyamin southwards, bypassing Beersheba to the Ramat Beka area (about 75 kilometers in length). In the north, the road would extend from Iron through Yokneam to Shlomi and the Lebanese border, with an extension of 57 kilometers proceeding northeast from Yokneam to Rosh Pina.

The highway will be made up of between 3 to 4 lanes in each direction (depending on the region), with access to the rest of Israel's road network through latitudinal road networks that dissect the country. In total the road will be 270 kilometers in length.

Due to the severe traffic problems in Israel's central metropolitan area the implementation of the central section of the highway has been accorded first priority. The total cost for the project is expected to be at least $1 billion.

The economic benefits of this route are expected to include:

  1. Reduction of vehicle operating costs, travel time, as well as facilitating easier access to most parts of Israel, along with decreasing the number traffic accidents;
  2. Increased opportunities to expand employment opportunities through the development of commercial centers, and industrial zones along the highway;
  3. Enhanced development of tourist facilities;
  4. Improved environmental quality due to the dispersal of air pollution in the coastal plane;
The means by which this project will be financed have yet to be resolved. However, one of the possibilities under serious discussion is that the highway be constructed as a toll road.

Israel Railway Authority - Development Plan for the Year 2000

Between 1989 and 1993 the Israel Railway Authority had spent in the region of NIS 1.8 billion on infrastructure, equipment and the purchase of land for the laying of new railway tracks. The Authority has mapped out a detailed plan for developing the railway network which by the end of the century will allow the country's rail system to cope with the challenges of mass passenger and cargo transportation.

The goals behind the Israel Railway Authority's plans to develop the train system are:

  1. To construct a system that will be able to transport up to 25 million people and 10 million tons of goods a year.
  2. To integrate the rail system with other transport systems and therefore offer a complementary network, as well as an alternative system which will help reduce the pressure on Israel's road system.
  3. To facilitate the geographical distribution of the population and encourage the use of public transport.
  4. To develop the Israeli train network so that it can act as an economic alternative to road haulage, both domestically and regionally.
  5. To offer a high level of service based on modern and environmentally friendly technology.
  6. To reduce the need for government subsidies to make the railway system economical.
Comparative Figures:
  Israel Holland Switzerland
Physical Data
Size of country 21.9 40.1 41.3
Population (thousands) 5,196 14,940 6,710
Train tracks (km) 573 2,798 2,982
Roads (km) 4,230 55,815 19,902
Cargo Transportation
Cargo (thousands tons) 8,700 17,700 50,700
Tons-Km (millions) 1,100 3,020 8,110
Ave. Travel Distance 126 171 160


        
  Israel Holland Switzerland
Passenger Carriage
Passengers (millions) 3.7 255.7 264.0
% of Journeys by Train 0.1 7.0 7.2
Ave. Yearly Train
Journeys Per Person (km)
58.0 43.3 33.2
Financial Data
Deficit (% of expenditure) 43.2 43.7 35.5

Source: Israel Railway Authority

After a detailed comparative examination, it was felt that the experience of Holland and Switzerland was most relevant for Israel's rail network. Accordingly, the authorities have decided to adopt and imitate the Dutch railway system, while making the necessary adaptations for Israel special situation.

The plans to develop Israel's railway network are focused round the main metropolitan centers of the country: between Netanya and Rehovot in the center; and between the Carmel Beach and Nahariya in the north. In these metropolitan areas the Railway Authority is planing to develop a suburban railway network between the suburbs and the centers of Tel Aviv and Haifa. In addition, further expansion of the inter-city routes is also planned, including:

  • improved connections between Tel Aviv and Haifa;
  • the renewal of the Tel Aviv Beersheba line.
The costs of these plans is expected to be in the region of NIS 3 billion.

In addition to this core plan, there exists additional proposals to expand the train network, the main proposals being:

  1. An express train between Tel Aviv and Jerusalem.
  2. Connecting Eilat to the railway network.
  3. Connecting Israel's rail network to those of the surrounding states.

Mass Transit System for the Metropolitan Area of Tel Aviv-Yafo

The City of Tel Aviv-Yafo IS the commercial and service center of the country, serving as a metropolitan base for a population of just under 2.5 million people and employing 300,000 people. Presently, the city's future development is restricted as a result of physical limitations due to traffic congestion.

The Ministry of Transport, along with the Tel Aviv-Yafo Municipality are planning to deal with the city's transportational difficulties by developing a solution based on an integrated railway system which will include: a metro network; elevated trains; public traffic lanes; public transport line formation planning; as well as transport, passenger & shopping centers. These plans are being coordinated with the suburban train project discussed in the Previous section. The whole system will be based on a state-of-the-art technology, that will provide the highest level of service for a large number of passengers with utmost safety, convenience and reliability. The development of this far-reaching project will be under the management of the Minister of Transport and the Mayor of Tel Aviv.

One of the possibilities under discussion, is that the metro and elevated trains - which form the core of the integrated system - will be promoted by offering a consortium to Build-Operate-Transfer the project. This project offers numerous business and entrepreneurial opportunities, such as route implementation and extended maintenance, as well as operation and maintenance of the various stations, not to mention advertizing.

It is expected that the planning stage will have been completed by the beginning of 1996.

        

Expansion Plans for Israeli Ports

Today, Israel's Port Authority faces the challenge of how to ensure that Israel's ports in Ashdod, Haifa and Eilat, will be able to deal with the growing demand for their services. The development of the ports are essential for Israel's continued export oriented strategy and the promotion of tourism in the region, as well as its plans to lower the costs of imported goods.

Presently, these ports are unable to deal with the pressures on their services, as they are operating close to their capacity levels and as they lack the needed docking facilities and equipment, as well as suitable connections with internal haulage facilities. In 1994 over 5,400 ships docked in Israeli ports, as compared to 3,600 in 1990 - a 50% increase in 5 years. Moreover, over this period the ports witnessed a dramatic increase in the movement of freight through their facilities - in 1995 over 26,000 million tons passed through Israel's ports as compared to 17,700 million tons in 1990.

To cope with this pressure, the port authorities have already invested NIS 1 billion over 5 years. However, the Israel Port Authority has put together a program which seeks to expand the port facilities at Israel's three main ports. In order to put this program in to operation, the Port Authority has set itself three main goals:

  1. To improve the level of service offered;
  2. To modernize the port facilities;
  3. To reduce costs and lower port tariffs.
To implement these goals will require the Port Authority to speed up its investment program, update and approve its expansion plans, improve its economic flexibility, as well as ensure that each port can become economically independent. In addition, it will be of the utmost importance that Israeli ports expand their cooperation and use of railway facilities and network in to their future development plans.

According to the Port Authority plans between 1995 and the year 2000, the Authority seeks to invest NIS 6 billion in expanding and developing the port facilities.

        

Conclusion

Israel is presently seeking to focus on the expansion of the country's physical infrastructure, in order to deal with the growing pressure on its transportation network. The factors that have led to the urgent need for investment in this field are:
  • the Previous low prioritization of infrastructure investment;
  • the massive economic growth Israel has experienced in recent years;
  • and the potential for converting Israel into a major transportation hub within the Middle East in the wake of the peace process.
In this document some of the main projects Israel is seeking to implement in all areas of the transportation system have been outlined. Israel's ability to finance and construct these programs will largely determine the economy's ability to attain future economic growth, as well as its ability to take advantage of its strategic geographical location in the region and exploit this advantage for economic benefit.

For further information on any of the above projects please contact the relevant body:

Cross Israel Highway Ltd.
13 Noach Moses Street
Tel Aviv 67442
Tel: 03 6969889
Fax: 03 6961192-3

Israel Port & Railway Authority

Metropolitan Tel Aviv-Yafo Administrat
Mass Transit System

Ministry of Finance The Israeli Economy Israel Investment Policy Privatization Infrastructure