Mobilis hybrid buses, Egged's subsidiary in Poland/Egged Europe
The Public Transport Authority of the Krakow Municipality announced that Mobilis, Egged's Polish subsidiary, has won a tender to operate 151 municipal buses powered by natural gas for a period of 10 years, with a total revenue of NIS 1.4 billion starting in 2024. In addition, the company won a tender to extend an existing franchise for three years in the capital Warsaw, with 54 articulated buses and revenues of NIS 150 million. The Krakow tender is the largest ever published in Poland for the operation of public transport by bus.
Today, the subsidiary Mobilis operates six public transport concessions in Warsaw, Krakow, Wrocław and Bydgoszcz, using 330 buses. With the commencement of the operation of the concession in Krakow, about 400 buses of the company will move on Polish roads.
Egged electric articulated buses in Poland / Egged Europe
In addition, following winning two significant tenders in 2022, EBS, Egged's Dutch subsidiary, currently operates four franchises across the Netherlands using 640 buses. From 2024, the country's operations will grow to more than 700 buses, including 500 electric buses, and will become the fourth largest company.
Egged Europe's turnover for 2023 is expected to be NIS 1 billion. In addition, following Egged's recent tenders in Poland and Holland, Egged crosses the threshold of 000,3 buses on the continent. In comparison, in Israel, Egged operates about 000,<> buses using public transportation.
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Gilad Riklin, CEO of Egged/Egged
Gilad Riklin, Egged's CEO: "Winning the new tender positions Egged as the largest private operator in Poland. The large fleet of buses powered by natural gas, in addition to electric buses operated in the Netherlands and Israel, positions the Egged Group as a leader in the transition to clean and green buses. Our goal is to continue expanding our operations in the Netherlands and Poland and to enter additional European countries."
The expansion in Europe is one of Egged's ways to compensate for the Ministry of Transport's move to reduce its share of the Israeli market, which used to be more than 50%, dropped to 35% in 2018 and declined again when by 2030 all of its lines will be tendered, in which it will be allowed to compete. Egged, whose Keystone Fund acquired 60% of its shares a year ago, also won the tender to operate the Tel Aviv Light Rail's Red Line, but lost tenders to operate the Green and Purple Line.
Efi Arbel, CEO of Egged Europe, told Walla, "All our employees are local, but we bring our experience in operating large public transportation systems and computer systems. We have acquaintances with bus manufacturers, some of whom we operate both in Europe and in Israel, including Chinese manufacturers such as BYD. We conduct a learning process in both markets, operating electric buses, identifying the true range and suitable lines for them, and service. Operating in Europe is profitable and economies of scale resulting from the growth of operations in the Netherlands and Poland are expected to lead to increased profitability rates."
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