A consortium comprising CAF and construction firm Shapir has secured a contract to build the extension of the Jerusalem tram project in Israel and take over operations of the network.

Named TransJerusalem J-Net, the consortium won the deal through a competitive bidding process.

The extension project, to be developed as a private-public partnership (PPP) scheme, includes the construction of 27km of track, 53 stations and various depots across a 6.8km-long Red Line stretch, along with building the 20.6km-long Green Line.

The consortium will supply 114 new Urbos trams for the Green Line, as well as refurbish 46 existing units that operate on the Red Line. It will also be responsible for delivering the signalling, energy and communication systems.

Additionally, the CAF-Saphir consortium will operate the two lines for 15 years and maintain them for 25 years.

Overall, CAF Group’s share in the contract exceeds €500m. It includes supplying new trams, overhauling existing vehicles and supplying signalling, energy and communication systems. The Spanish rolling stock manufacturer will also be responsible for project integration.

CAF will own a 50% stake in the special purpose vehicle (SPV) company that will manage operations and maintenance works on the Red and Green lines.

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The construction works are scheduled to begin this year and the overall tram network is expected to become fully operational by 2025.

Besides TransJerusalem J-Net, another consortium comprising Shikun & Binui and Egged, CRRC, Comsa, Efatec and MPK, placed a bid for the project.

Recently, CAF Signalling secured three rail contracts in Europe with a combined value of €120m.