Chinese Firm to Supply Tram Cars for Jerusalem’s Blue Line

Tram Cars for Jerusalem’s Blue Line will be supplied by CRRC, but the manufacturing will take place in the U.S. due to international political pressure. This is reported by the railway transport news portal Railway Supply.

Israel’s finance and transport ministries reached a deal to move forward with the Blue Line tram contract after weeks of negotiations. CRRC, a Chinese state-owned company, will stay in the project but will build the tram cars at its plant in the United States.

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This solution adds 5% to the project’s total cost, raising expenses by about $27 million, but officials agreed it was the best option to avoid further delays. Originally, Polish manufacturer Pesa was supposed to supply the vehicles but withdrew after the war in Ukraine began.

CRRC to Manufacture Tram Cars in the United States

The planned $2 billion contract between the JTrain consortium and CRRC faced setbacks due to CRRC’s presence on the U.S. blacklist. American officials raised concerns about its links to China’s defense sector.

In response, Israel approved CRRC’s continued involvement under the condition that production occurs outside China. By choosing the U.S. facility, the government balanced diplomatic concerns with project continuity.

Tram Cars Deal Resumed After Delayed Signing

A formal signing was scheduled just before Passover but was canceled at the last minute when Israel’s state comptroller withheld approval. Political leaders intervened, halting the deal temporarily.

After that, both ministries worked to resolve legal and strategic issues to finalize the contract. Shifting manufacturing helped ease external objections while preserving CRRC’s role in the tram supply chain.

The Blue Line will expand public transit in Jerusalem significantly. By using modern tram cars from a U.S. site, the city combines technological progress with political compromise.

Source: www.newsru.co.il

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