BergerWorld: 3rd Quarter 2008

Although Israel's transportation network is well developed, the country's infrastructure is continuously being upgraded to meet growing demand. Israel is currently undertaking an ambitious program for inter-city and urban/metropolitan rail improvements. The Berger Group is assisting in the implementation of several of these projects throughout the country.

The Team was retained by Israel Railways, who are responsible for all inter-city and urban rail passenger and freight traffic, to evaluate five-year period rolling stock requirements to meet rapidly growing traffic demand. Berger first inventoried existing rolling stock; evaluated current operational plans; anticipated future fleet purchases; and proposed rail development plans. Based on estimated traffic and revenue projections, the Team then analyzed a number of alternative rolling stock packages, outlining the advantages and disadvantages of each, and assessed long-term operation and maintenance costs for the alternatives. Finally, Berger provided recommendations regarding the partial electrification of the system, the addition of new lines and services and an ambitious $500 million rolling stock procurement program.

Berger also provided consulting services for the implementation of the new $900 million A1 Rail Line and Tunnel connecting Tel Aviv to Jerusalem. Because Israel's roads are heavily congested and existing service on the old Jaffa-Jerusalem line is inefficient, there is an urgent need for a new link between the two cities. In response, a new 60-kilometer-long, high-speed, twin-track line is being constructed to transport passengers between the two cities in less than 30 minutes. Although originally planned as an electrified line, this option, as well as a diesel option, is currently under review. The line is expected to be completed in 2014.