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Mickey Raviv, President of CAF Israel, expressed confidence in the country’s transport infrastructure sector during a conversation at the Globes Infrastructure for the Future Conference.
His insights reflect both the challenges and opportunities CAF, a global Spanish public transport systems manufacturer, faces in Israel and the broader Middle East region.
Speaking to Globes Deputy Editor Dror Marmor, Raviv highlighted the strategic importance of Israeli transportation projects while navigating political and economic complexities.
Beating Global Competitors: A Demonstration of Unwavering Commitment
Raviv discussed how CAF Israel has not only survived but thrived in Israel’s competitive transport infrastructure market, which includes European giants like France, Germany, and Spain.
One of the most notable achievements, he shared, was winning a tender for a project in Jerusalem, beating out Chinese competitors.
This victory, Raviv noted, was a testament to CAF Israel’s ability to succeed without getting entangled in politics. “We beat the Chinese in competing for the tender in Jerusalem, and we proved that it can be done without politics,” he said.
The victory over the Chinese was significant, considering the geopolitical context surrounding Israel’s infrastructure projects.
Despite global competition, Raviv emphasized that CAF Israel is fully committed to providing innovative, high-quality solutions for the country’s transportation needs.
“Israel is a small country, but it’s a huge market for us,” he added. His enthusiasm reflects a broader trend of international companies increasingly viewing Israel as a vital hub for infrastructure development.
International Relations and the Possibility of Connecting Israel’s Railway to Saudi Arabia
Turning to the broader geopolitical landscape, Raviv shared his thoughts on the potential to connect Israel’s transportation network to Saudi Arabia, a prospect that has gained traction with the recent shifts in regional diplomacy.
“We are in an era of incredible transformations,” he noted. Referring to the normalization of relations between Israel and the Persian Gulf, Raviv pointed to the progress made during President Trump’s term.
The normalization efforts could potentially pave the way for connecting Israel’s railway network with that of Saudi Arabia via Jordan, a connection that would require a 200-kilometer stretch of railway.
“As a company, this is an easy transition for us. CAF is already deeply involved in Saudi Arabia’s railway infrastructure. We know the planning and deployment of trains there.
It’s very feasible,” Raviv said. CAF’s established presence in Saudi Arabia gives the company a strategic advantage should such a project move forward.
Impact of Regional Instability on CAF’s Operations
Raviv, who founded CAF Israel in 2020, discussed how the company has adapted to the challenges of operating in a region affected by conflict and instability.
The last 18 months have been particularly difficult, with the ongoing Gaza conflict and the war disrupting daily life in Israel. Despite these challenges, Raviv proudly stated that the company had continued operations without significant interruption.
“There has never been a moment when there were no foreign workers in the country,” he said, noting that during the worst of the conflict, the company evacuated the families of foreign workers to Spain for their safety.
CAF’s global CEO visited Israel twice after the war broke out, reinforcing the company’s commitment to the market.
“The company is alive and kicking, and it recognizes the importance of the Israeli market,” Raviv added. This unwavering commitment demonstrates the long-term vision CAF has for its operations in Israel, despite regional uncertainties.
Political Pressures and Navigating Competition
While competition from global players, including China, is fierce, Raviv doesn’t see political pressures as a deterrent to business.
He explained that competition remains fair and unimpeded by politics, with companies selected for projects based on their capabilities rather than geopolitical considerations.
“A different group is selected for each project. Israel’s backlog of infrastructure projects makes it a very attractive market, regardless of political tensions,” Raviv said.
For CAF Israel, these projects are not just business opportunities; they are essential contributions to the country’s future growth. Raviv emphasized the importance of ensuring that the quality of trains and infrastructure projects remains high.
He raised concerns about the potential long-term impact of cutting corners on quality, stressing that Israel cannot afford to be stuck with aging trains that don’t meet the demands of the future.
The Future of Transport in Israel: Challenges and Opportunities
Looking ahead, Raviv expressed strong expectations for upcoming infrastructure projects, particularly the Tel Aviv Metro and the railway connection to Eilat.
CAF Israel is positioning itself as a key player in every major transportation initiative in Israel.
The company aims to continue its successful track record in securing tenders for future projects, especially as competition in the global railway industry intensifies with mergers like that of Alstom and Bombardier.
However, Raviv highlighted a significant challenge facing the Israeli railway sector: a shortage of skilled engineers.
Many engineering graduates are increasingly attracted to industries such as chip manufacturing, drawn by the promise of higher salaries and less challenging work environments.
To counter this trend, CAF Israel has been training engineers from other industries, equipping them with the skills necessary to succeed in the railway sector. This approach, Raviv noted, has been successful in attracting more talent to the industry.
The broader rail industry in Israel is seeing increased interest from local industries as well. Raviv recounted how his efforts helped a northern Israeli company, Tal and Hadas, expand its operations by supplying internal components for CAF trains. His support of local businesses highlights the potential for greater collaboration between international companies and Israeli manufacturers in future projects.
Ensuring the Success of the Metro Project and the Railway to Eilat
Raviv shared that while the infrastructure for the Metro project and the railway to Eilat is feasible, more must be done to streamline and unify the knowledge accumulated by different entities.
“Israel Railways relies on two international suppliers, but there is room for additional players,” he said. He urged that future tenders place greater emphasis on quality to ensure long-term success.
Moreover, he stressed the importance of a unified government approach for metro projects, pointing out the need for Israel to consolidate its expertise in both tender processes and project execution.
Such collaboration, he believes, is vital for ensuring that Israel’s future transport infrastructure remains world-class.
Financing Future Projects
Raviv reassured stakeholders that financing for future transport projects in Israel is not a concern. “There’s enough money. We closed financing on time for our projects. Today, there is no problem financing projects in Israel,” he said, reflecting a positive outlook for the future of infrastructure investment in the country.
CAF Israel’s commitment to the Israeli market, its ability to navigate regional instability, and its focus on quality and innovation position it well for future success.
As the country’s transport sector continues to grow and evolve, companies like CAF will play a key role in shaping its future.