Israel Moves Forward with 17 Billion Shekel Coastal Railway Expansion

The Ministry of Finance Infrastructure Coordination Committee has resolved disputes between Israel Railways and state-owned fuel companies, clearing the way for the Coastal Railway expansion project. Under the decision announced on Thursday, the parties must sign execution agreements within 30 days and cannot condition the start of work on land rights registration or financial disputes.

The project, designated as National Infrastructure Plan 65A, aims to upgrade and expand the Coastal Railway between the Hof HaCarmel station and Shefayim over approximately 68 kilometers. The plan includes adding two tracks alongside existing ones, accommodating trains capable of speeds up to 250 kilometers per hour. The initiative is expected to reduce travel time between Haifa and Tel Aviv to about half an hour while increasing train frequency. The project is estimated to cost approximately 17 billion shekels, with a completion target of 2035.

The core dispute involved the relocation of fuel pipelines spanning about 13.4 kilometers for each company. The committee ruled that construction can begin before easement registration is finalized, ordering Israel Railways to submit expropriation documents within 60 days and complete registration within a year. Regarding remaining disputes with energy infrastructure firms over engineering management costs and soil surveys, the committee determined they will not delay agreement signing or the commencement of work, while requiring detailed cost breakdowns within 30 days.