Israel Railways withdraws Siemens cars

Israel Railways CEO has instructed that the cars be withdrawn following technical problems, which have harmed timetables.

Only three months after putting into service the cars purchased from Siemens, Israel Railways has withdrawn them from use following a series of problems.

In a letter sent today to VPs and relevant departmental managers, Israel Railways CEO Yitzhak Harel instructed them to withdraw the Siemens cars for new checks, "until the checks are completed and the reasons for the problems are found and solutions are formulated which enable the operation of the cars in a safe way."

Israel Railways has reported that during the period of operation of the cars in the past few months faults have been discovered which have affected timetables of trains.

Consequently, Israel Railways CEO decided to recall the cars for checks by staff and take them out of service until the faults become clear and are dealt with. Israel Railways CEO is also considering fining Siemens over the inconvenience caused to passengers.

in January 2006 Siemens won the tender published by Israel Railways for the supply of single-deck cars. This was a huge tender worth NIS 700 million for the immediate supply of 87 cars with an option for an additional 585 cars for NIS 4 billion.

After a delay of nine months by Siemens, the first consignment of cars in the initial order of 87 cars, was delivered in June 2008. Israel Railways fined Siemens several million euros over the delay.

Israel Railways had hoped to bring the new cars into service this year, but in light of the decision to stop using the cars, it looks likely that the pressure and congestion on the railways will only increase, since the number of passengers is continually on the rise.

Industry sources estimate that following the problems with new Siemens cars, Israel Railways will speed up procedures in publishing a new tender for new cars. Several months ago, the board of directors approved such a new tender for cars as well as locomotives worth NIS 1 billion.

A senior source in the transport sector said, "Even if a new tender is published, it will take at least another year until the winning bid is selected and two years until the cars arrive. If Israel Railways is really serious and wants to prevent inconvenience to passengers, it will have to consider an emergency purchase of cars."

Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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