On the eve of Passover, Israel’s Finance Ministry halted the signing of a contract with Chinese company CRRC to supply trams for the Blue Line in Jerusalem. This is reported by the railway transport news portal Railway Supply.

On the eve of Passover, Israel’s Finance Ministry halted the signing of a contract with Chinese company CRRC to supply trams for the Blue Line in Jerusalem
Avshalom Sassoni/Flash90

The JTrain consortium planned to finalize an agreement with CRRC worth approximately $2 billion. However, political leadership intervened and canceled the signing ceremony.

Don’t miss…Construction of Alstom Depot Begins Near Barcelona

Finance Ministry auditor Yahli Rothenberg was expected to authorize the deal, but the process was stopped at the last minute.

CRRC Trams and Geopolitical Risks

The decision was influenced by the fact that CRRC is listed on the U.S. Department of Defense’s blacklist as a company linked to China’s military sector (railsecurity.org). This raised concerns among Israeli officials about potential geopolitical and security implications.

Authorities also had to consider possible sanctions and diplomatic pressure from international allies. CRRC trams have become a point of political contention beyond the scope of public transport development.

Alternative Suppliers to CRRC Trams for Jerusalem

Meanwhile, South Korean manufacturer Hyundai Rotem proposed its services, stating that it had already reserved production capacity for the Jerusalem project and could meet the required timeline. A company executive formally notified Israeli leadership of their readiness.

Earlier, Polish company Pesa withdrew from the project due to economic challenges caused by the war in Eastern Europe. This created an urgent need to find a new supplier to move the project forward.

As a result, the Blue Line light rail initiative remains in limbo. The JTrain consortium must now quickly identify a new supplier that meets both the technical standards and political expectations of the Israeli government.

Source: www.newsru.co.il

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…Copenhagen: Construction of Metro Line M5

Find the latest news of the railway industry in Eastern Europe, the former Soviet Union and the rest of the world on our page on Facebook, Twitter, LinkedIn, read Railway Supply magazine online.

Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit