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OrdinanceAdministrative Law

Railways Ordinance [New Version], 5732-1972

פקודת מסילות הברזל [נוסח חדש], תשל"ב-1972

Published: 1972-03-23Last amended 2026-03-31✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Section A: Concession

Operation of a Local Railway§
46a.
(a)The Minister may grant a concession for the construction, operation or management of a local railway to a company registered in Israel that is not a Government company.
(b)
(1)The holder of the concession shall be selected by means of a public tender;
(2)The tender and the concession may stipulate conditions restricting the right to participate in the tender and to hold the concession, provided that such conditions shall be determined with the approval of the Minister and the Minister of Finance (hereinafter — the Ministers); conditions in the tender and in the concession relating to the duration of the concession, fares and their updating also require the approval of the Ministers.
(c)(Repealed).
(d)Nothing in this section shall prevent the Government from entering into an agreement with a Government company for the construction, operation or management of a local railway.
(e)(Repealed).

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Section C: Application of the Provisions of the Ordinance in respect of a Local Railway

Application of the Provisions of the Ordinance in respect of a Local Railway§
46b.

The provisions under this Ordinance shall apply in respect of a local railway, with the modifications necessitated by the characteristics of the railway and the manner of providing service on it, and with the following modifications:

(1)In section 16 —
(a)in subsection (a), at the end, the words "specifying the particulars as approved by the Director" shall be read;
(b)in place of subsection (b), the following shall be read:

"(b) A passenger on a local railway shall pass, before the journey begins or immediately after it begins, the ticket referred to in subsection (a) through the device designated for that purpose.";

(c)in subsection (c), after "his ticket" the words "after it has been passed through the device in accordance with the provisions of subsection (b)" shall be read;
(2)In section 17 —
(a)in subsection (a), after "without a ticket" the words "that has been passed through the device in accordance with the provisions of section 16(b)" shall be read;
(b)in subsection (d) —
(1)in paragraph (1a), at the end, the words "Notwithstanding the provisions of section 81a1(c) of that Law, an application for the execution of the payment demand shall not be submitted until 45 days have elapsed from the day the warning was delivered to the person obligated to pay;" shall be read;
(2)in paragraph (2), at the end, the words "or an objection to a payment demand under section 46b1;" shall be read;
(3)after paragraph (2), the following shall be read:

"(2a) Where an objection to a payment demand has been submitted under section 46b1(a), the payment demand shall not be submitted for execution in enforcement proceedings until the payment demand has become a final debt; where the payment demand has become a final debt — the holder of the operating permit may submit an application for the execution of the payment demand in enforcement proceedings; in this paragraph, 'final debt' — a payment demand in respect of which the appeal thereon has been dismissed and no further appeal may be lodged against the decision given in respect thereof, or in respect of which a final judgment has been given;

(2b)Where no objection to a payment demand has been submitted under section 46b1(a) and the period for submitting it has elapsed, or where an objection as aforesaid has been submitted and dismissed and no appeal against the decision on the objection has been lodged under that section and the period for lodging it has elapsed, the provisions of paragraph (1a) shall apply;";
(4)after paragraph (3), the following shall be read:

"(4) Notwithstanding the foregoing in paragraph (3), where an objection has been submitted under section 46b1, shekel interest as defined in the Interest and Linkage Adjudication Law, 5721-1961 shall be added as referred to in that paragraph from the date on which the decision on the objection was delivered to the objector, and if an appeal against the decision on the objection or an appeal against the decision of the appeals committee under that section has been lodged — from the date on which the decision of the appeals committee or the court, as the case may be, was given, and the provisions of that Law shall apply in respect of such interest, with the necessary modifications.";

(3)Section 27 shall not apply in respect of a railway officer who is also the holder of a local train driving licence and who was in a state of intoxication while serving in his capacity;
(4)In section 36, wherever appearing, after "under the provisions of section 17" the words "as applied by section 46b(2)" shall be read;
(5)In section 45, wherever appearing, in place of "under this Ordinance" the words "under section 36(a)(1)" shall be read;
(6)The provisions of sections 47 and 48a shall not apply in respect of a local railway.
Objection and Appeal against a Payment Demand for an Enhanced Charge§
46b1.
(a)A person obligated to pay an enhanced charge who disputes a payment demand may submit an objection to the payment demand to the holder of the operating permit within 30 days from the day the person received the payment demand; the Minister, with the consent of the Minister of Justice, shall prescribe provisions regarding such an objection, including provisions regarding the particulars to be included in the objection, the documents to be attached to it and the procedures for the hearing of the objection.
(b)A decision on an objection shall be reasoned and in writing, and shall state the objector's right to lodge an appeal under subsection (c), as well as the period for lodging the appeal and the manner of lodging it.
(c)An objector who disputes the decision on the objection may appeal against it before an appeals committee appointed under subsection (d); in an appeal under this section, the holder of the operating permit shall be the respondent.
(d)The Minister and the Minister of Finance shall appoint an appeals committee of three members, namely: a person qualified to be appointed as a judge of a Magistrate's Court, who shall be appointed on the proposal of the Minister of Justice and who shall be the chairperson, a representative of the Ministry of Transport, National Infrastructure and Road Safety, and a public representative.
(e)The provisions under the Administrative Courts Law, 5752-1992, shall apply to an appeal and an appeals committee under this section, with the modifications necessitated by this Ordinance, provided however that a final decision of the appeals committee may be appealed before the District Court if leave for such appeal is granted by the District Court.
(f)The appellant before the appeals committee under the provisions of subsection (c) shall serve a copy of the appeal on the Director; if the Director considers that a public matter within the scope of his functions or powers under this Ordinance or under the concession is liable to be affected by or involved in an appeal proceeding under this section, he may appear in that proceeding and present his position.

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Section D: Application of the Provisions of the Traffic Ordinance in respect of a Local Train

Application of the Provisions of the Traffic Ordinance in respect of a Local Train§
46c.
(a)The provisions of the Traffic Ordinance [New Version] that apply in respect of a vehicle shall apply in respect of a local train as if it were a vehicle, with the necessary modifications and with the following modifications:
(1)The definitions "suspension" of a driving licence and "tachograph" in section 1, and the provisions of Chapter II, Chapter III, sections 27c, 41, 41a, 44a, 51 to 61a, Chapter VI-A, sections 65, 65a, 65b, 65c, 69a, 69c, Chapter VIII and sections 79, 80, 82 and 84 — shall not apply;
(2)Wherever appearing, in respect of a driving licence, it shall be read as if "local train driving licence granted under Section H of Chapter IV-A of the Railways Ordinance" were stated;
(3)Notwithstanding the provisions of section 1 of the Traffic Ordinance [New Version] —
(a)the definition "owner" shall be read, in respect of a local train, as follows:

"'owner' — the owner of a local train, and also any one of the following:

(1)the person who holds the local train under a lease agreement or a hire-purchase agreement or a sale agreement;
(2)in respect of a local train owned by a corporation — an active manager, a partner other than a limited partner, or a senior administrative employee of the corporation responsible for the local train;";
(b)the definition "traffic offence" shall be read, in respect of a local train, as follows:

"'traffic offence' — any one of the following:

(1)an offence against the provisions under the Traffic Ordinance [New Version] as applied in respect of a local train under section 46c of the Railways Ordinance;
(2)an offence against the provisions under the Railways Ordinance, as applied to a local railway;
(3)an offence referred to in section 343 of the Penal Law, 5737-1977, committed in the course of using a local train;";
(4)In section 27(a)(2) of the Traffic Ordinance [New Version], after "in the Fourth Schedule" the words "that is a traffic offence" shall be read;
(5)In section 36(c) of the Traffic Ordinance [New Version], after "in the Second Schedule" the words "that is a traffic offence" shall be read;
(6)In section 37 of the Traffic Ordinance [New Version], after "in the Second Schedule" and after "in the First Schedule" the words "that is a traffic offence" shall be read;
(7)In section 38 of the Traffic Ordinance [New Version], after "in the First Schedule" and after "in the Second Schedule" the words "that is a traffic offence" shall be read;
(8)In section 39 of the Traffic Ordinance [New Version], after "in the First or Second Schedule" the words "that is a traffic offence" shall be read;
(9)In section 40a(b) of the Traffic Ordinance [New Version], wherever appearing, after "in the Tenth Schedule" the words "that is a traffic offence" shall be read;
(10)In section 46 of the Traffic Ordinance [New Version], in place of "to which sections 35 to 42 or 43, 44 and 44a apply" the words "to which sections 35, 36 to 36b, 39a to 40a and 42 to 44 apply" shall be read;
(11)In section 47 of the Traffic Ordinance [New Version], wherever appearing, after "in the Fourth Schedule" the words "that is a traffic offence" shall be read, and subsection (j) — shall not be read;
(12)In section 62 of the Traffic Ordinance [New Version], in paragraph (1), at the end, the words "insofar as they apply in respect of a local train" shall be read, and paragraphs (10) and (11) — shall not be read;
(13)In section 63 of the Traffic Ordinance [New Version], the passage beginning with the words "or under section 10" until the word "lapsed" — shall not be read, and after "in the First or Second Schedule" the words "that is a traffic offence" shall be read;
(14)In section 64b(a1) and (a2)(1) of the Traffic Ordinance [New Version], wherever appearing, after "under this Ordinance" the words "that is a traffic offence" shall be read;
(15)In section 66 of the Traffic Ordinance [New Version], after "under this Ordinance" the words "or under the Railways Ordinance" shall be read, and in place of "to the licensing authority" the words "to the Director as defined in the Railways Ordinance" shall be read;
(16)In section 67 of the Traffic Ordinance [New Version], the words "the driving of which is prohibited without a licence under this Ordinance" — shall not be read;
(17)In section 68 of the Traffic Ordinance [New Version], in place of "this Ordinance" the words "section 46c(b) of the Railways Ordinance" shall be read, and after "and 63" the words "as applied by section 46c(a)(12) and (13) of the Railways Ordinance" shall be read.
(b)The Minister may prescribe that Regulations under the Traffic Ordinance [New Version] that apply in respect of a vehicle shall apply in respect of a local train, with the modifications necessitated by the characteristics of the railway and movement on a road.
(c)The council of a municipality or of a local council may, with the consent of the Minister of the Interior and the Minister, prescribe that by-laws enacted under section 77(a)(2) of the Traffic Ordinance [New Version] that apply in respect of a vehicle shall apply in respect of a local train, with the necessary modifications and with such modifications as it shall prescribe, and subject to Regulations under subsection (b).

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Section E: Permit for the Operation of a Local Railway

Obligation to Obtain a Permit§
46d.

No person shall operate, by himself or through another, a local railway, unless an operating permit has been granted to that person by the Director in respect of that local railway, or unless that person operates the local railway on behalf of a person who has been granted an operating permit as aforesaid, and in accordance with the conditions and limitations set out in the operating permit.

Period of Validity of an Operating Permit§
46e.
(a)An operating permit shall be valid for a period of four years.
(b)The Director shall publish in Reshumot (Official Gazette) and on the website of the Ministry of Transport and Road Safety a notice regarding the commencement of the validity of the operating permit and the date of its expiry.
Restriction on Transfer of an Operating Permit§
46f.
(a)An operating permit is not transferable, chargeable by way of charge (security interest) or attachable, unless prior written approval has been granted by the Director and subject to conditions prescribed by the Director.
(b)The transfer of control in a corporation that is the holder of an operating permit requires prior written approval from the Director.
Conditions for the Grant or Renewal of an Operating Permit§
46g.

The Director shall grant an operating permit to an applicant who is a concession holder under section 46a(a) or to an applicant who is a government company with which the Government has contracted under section 46a(d), or shall renew a permit granted to such an applicant, if satisfied that all of the following conditions are met in respect of the applicant:

(1)The applicant has demonstrated, to the satisfaction of the Director, that it has carried out the preliminary actions required of it for the purpose of operating the local railway, as directed by the Director, and in respect of an applicant who is a concession holder under section 46a(a) – the Director has also received confirmation that the applicant meets the conditions of the concession relating to professional-operational requirements for the purpose of operating the local railway, from the person designated in the concession, if so designated, to accompany the implementation of the conditions of the concession on behalf of the State;
(2)The applicant has submitted to the Director a plan for the operation of the local railway, including matters as prescribed by the Minister, inter alia, under section 46j(d), and including matters as set out below (in this Chapter – operating plan), and the Director has approved the operating plan:
(a)a plan for the management of safety on the local railway;
(b)details regarding the training conditions for persons who will serve as drivers on the local train, as well as for persons who will serve in other positions on the local railway for which training is required in order to perform their duties;
(c)the conditions for the operation and maintenance of the local railway;
(d)the operating procedures of the local railway and the conditions for the carriage of passengers and their baggage on the local train;
(e)the manner in which the applicant is to be prepared for the implementation of the conditions required for the activity of the local railway as prescribed under section 46j(d);
(3)Proof of the applicant's engagement, or of a person on its behalf, with a person who has received an operations manager licence under Section G, for the purpose of employing that person to carry out the actions referred to in section 46l(a);
(4)The applicant, a controlling shareholder in it, or a senior office holder in it, has not been convicted of an offence which, by reason of its nature, gravity or circumstances, renders it, in the opinion of the Director, unfit to be granted or to have renewed an operating permit, and no indictment is pending against the applicant on suspicion of committing such an offence.
Conditions and Restrictions in an Operating Permit§
46h.

The Director may prescribe in an operating permit, at the time of the grant of the permit and during the period of its validity, conditions and restrictions that shall apply to the permit holder during all or part of the period of validity of the permit, including conditions as set out below, provided that conditions and restrictions as aforesaid shall not be prescribed during the period of validity of the permit unless the permit holder has been given an opportunity to present its arguments in that regard:

(1)The type of local train to be operated on the local railway and its characteristics;
(2)The purpose for which the permit holder is entitled to operate the local train;
(3)The routes of the local train.

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