Israel: According to the Calcalist, the decision came after CRRC agreed to fulfil the order through its US-based subsidiary. Previously, the Israeli Ministry of Finance had blocked the deal for Dania Cebus and Dan, part of the JTrain consortium, which implements Jerusalem’s tram concession project.
The potential exclusion of CRRC had been considered amid an escalating trade war between the US and China. The Calcalist reports that Israel’s Ministry of National Security opposed the procurement under pressure from the Trump administration.
Final approval remains pending, with Israeli media suggesting that shifting production to the US could increase costs by at least ILS 100 mln, or $28.6 mln.
CRRC operates two facilities in the US, in Chicago and Springfield, with the latter currently implementing a large-scale 404-car Boston metro contract with delays. The reliance on imported Chinese car bodies and components creates significant risks of rising costs given Trump’s aggressive tariff policies.
In late 2023, JTrain won the tender to build, equip, and operate Jerusalem’s new line. Originally, Poland’s Pesa was to supply trams worth €400 mln, however, the company raised the price due to regional instability, resulting in Jtrain rejecting the deal. Then, the consortium signed a memorandum on trams supply with CRRC, with the manufacturer proposing a €15 mln less expensive contract. In addition, the company has already supplied trams to Israel, 90 units have operated in Tel Aviv since August 2023.
