Israel Railways announced last week that Siemens had won a NIS 5 billion tender to supply rail cars to Israel Railways. According to a statement issued by the board the tenders committee selected Siemens to supply 671 railway cars over a period of 10 years.
Siemens offer won over two international companies Alstom of France and Bombardier of Canada. It is understood that the Siemens deal includes an option for maintenance of the cars, either by Siemens or through a joint venture.
The statement also said that 86 railway cars were being ordered for NIS 700 million, with an option to order an additional 585 rail cars. Delivery of the new cars will begin in August 2007.
Israel Railways general manager Offer Linchevski said that the 86 railway cars will double the number of railway cars in operation and will assist the railway company to meet the increasing demand for railway transportation.
The chairman of Israel Railways Moshe Leon said in a separate press release that Israel Railways’ current lack of railway equipment causes inadequate service, failure to meet schedules, and low frequency on its routes therefore the choice of advanced railway cars manufactured by an international concern would make a significant contribution to improving the level of service and quality.