The red line of the Tel Aviv light rail began operating about two weeks ago. While most of the public associates the project with Chinese involvement in Israel, the truth is more complex.
The NTA Metropolitan Mass Transit System divided the project into several sub-tenders. The tender for the mining of the tunnels and the construction of the stations in the eastern part of the line was won by the Israeli company Shikun and Binui and the Chinese CRTG; the tender for the mining of the tunnels and the western stations and the Carlebach station was won by the Israeli Denya Sibus and the Chinese CCECC; the tender for the supply of the electrical and communication systems was won by a group of two Chinese companies, together with a German company; and the tender for the train's signaling system – which due to a strange malfunction in one of its components caused the train to brake suddenly and led to repeated delays of the opening of the train line – was won by the French company Alstom.
All these tenders are construction tenders, in which the State of Israel hired the services of an operating contractor that has no influence on the future operation of the railway. However, the operation and maintenance of the red line for ten years was in fact won by Chinese companies that are part of the Tevel company, which includes Egged (51 percent of the shares), Shenzhen Metro (30 percent), and CCECC (19 percent). Although these Chinese companies are not the controlling owners of the Tevel company, they have close ties with the government in Beijing, and companies linked to them are even blacklisted by the United States and the World Bank, due to ties with the Chinese military, corruption, fraud, and more.
American sensitivity to Chinese involvement in infrastructure may test Israel-US relations soon. For example, in the Nofit light rail tender, which will connect Haifa and Nazareth, two of the six competing groups include Chinese companies. This is also true for the "bullet train" initiative, which will connect the north of the country with the south, and it seems almost obvious that Chinese companies will have an advantage. That being the case, and in the face of American sensitivities, already in the near future Israel will have to manage carefully the assets of experience and quality that the Chinese companies bring with them.
The red line of the Tel Aviv light rail began operating about two weeks ago. While most of the public associates the project with Chinese involvement in Israel, the truth is more complex.
The NTA Metropolitan Mass Transit System divided the project into several sub-tenders. The tender for the mining of the tunnels and the construction of the stations in the eastern part of the line was won by the Israeli company Shikun and Binui and the Chinese CRTG; the tender for the mining of the tunnels and the western stations and the Carlebach station was won by the Israeli Denya Sibus and the Chinese CCECC; the tender for the supply of the electrical and communication systems was won by a group of two Chinese companies, together with a German company; and the tender for the train's signaling system – which due to a strange malfunction in one of its components caused the train to brake suddenly and led to repeated delays of the opening of the train line – was won by the French company Alstom.
All these tenders are construction tenders, in which the State of Israel hired the services of an operating contractor that has no influence on the future operation of the railway. However, the operation and maintenance of the red line for ten years was in fact won by Chinese companies that are part of the Tevel company, which includes Egged (51 percent of the shares), Shenzhen Metro (30 percent), and CCECC (19 percent). Although these Chinese companies are not the controlling owners of the Tevel company, they have close ties with the government in Beijing, and companies linked to them are even blacklisted by the United States and the World Bank, due to ties with the Chinese military, corruption, fraud, and more.
American sensitivity to Chinese involvement in infrastructure may test Israel-US relations soon. For example, in the Nofit light rail tender, which will connect Haifa and Nazareth, two of the six competing groups include Chinese companies. This is also true for the "bullet train" initiative, which will connect the north of the country with the south, and it seems almost obvious that Chinese companies will have an advantage. That being the case, and in the face of American sensitivities, already in the near future Israel will have to manage carefully the assets of experience and quality that the Chinese companies bring with them.