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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Section F: Provisions for the Period of Validity of an Operating Permit
Restriction, Suspension, Revocation of an Operating Permit or Refusal to Renew It§
46i.
(a)The Director may, by a reasoned decision in writing and subject to the provisions of subsection (b), restrict an operating permit, suspend it until conditions prescribed by the Director are fulfilled, revoke it or refuse to renew it, upon the occurrence of any of the following, after having given the permit holder an opportunity to present its arguments in that regard:
(1)The permit was granted on the basis of false information;
(2)The permit was granted on the basis of incorrect information and there is reasonable ground to assume that had it been known to the Director the permit would not have been granted;
(3)A condition of the conditions for the grant or renewal of the permit under section 46g has ceased to be fulfilled in respect of the permit holder;
(4)The permit holder has breached a condition or restriction prescribed in the permit or a provision of the provisions applicable to it under this Ordinance;
(5)A persistent deterioration, contrary to the provisions under this Ordinance, in the level of service provided to the public of passengers on the local train operated by the permit holder has occurred.
(b)The Director shall not revoke or suspend an operating permit under the provisions of subsection (a)(3), (4) or (5), unless the Director has first demanded that the permit holder fulfil the condition or the provision that has ceased to be fulfilled or that has been breached as referred to in that subsection, within a period prescribed by the Director, and the permit holder has failed to do so; the provisions of this subsection shall not apply if the condition or the provision that has ceased to be fulfilled or that has been breached cannot be fulfilled.
(c)If a concession granted under section 46a(a) is revoked, the operating permit granted to the concession holder shall be revoked at the time of revocation of the concession.
(d)If an operating permit is revoked or suspended under subsection (a), or if an operating permit lapses under subsection (c), the permit holder shall cease to operate the local railway and the powers and rights vested in it under this Ordinance shall expire, all at such time and in such manner as the Director shall direct, having regard to the need to ensure continuity of service provided to the public of passengers on the local train.
(e)If an operating permit is suspended under subsection (a), the Director shall direct, with the approval of the Minister, on the manner of providing service to the public of passengers during the period of suspension, by all or some of the following means:
(1)Operation of the local railway by the holder of the operating permit, on such conditions as the Director shall direct;
(2)Operation of alternative public transport services by such person as the Director shall direct.
(f)If an operating permit is revoked under subsection (a) or lapses under subsection (c), the Minister may, with the approval of the Government, direct by Order that the local railway in respect of which the permit was revoked or lapsed shall be operated, commencing on the date prescribed by the Director under subsection (d), by such person as is designated in the Order and in accordance with its provisions, all for the shortest period of time required for the purpose of granting an operating permit in respect of that local railway to an applicant who has received a concession under section 46a(a) or to an applicant who is a government company with which the Government has contracted under section 46a(d), in accordance with the provisions of section 46g.
Obligations and Conditions regarding the Operation of a Local Railway§
46j.
(a)The holder of an operating permit shall operate the local railway in accordance with the operating plan as approved by the Director under sections 46g(2) or 46k and in accordance with the conditions and provisions under this Section and Section E and under section 57(a)(5) and (7).
(b)Without derogating from the responsibility of the holder of an operating permit under this Ordinance, the holder of an operating permit or a person on its behalf shall employ an operations manager who has received a licence under Section G.
(c)The holder of an operating permit shall not employ a person for the purpose of driving a local train unless that person holds a licence to drive a local train under Section H.
(d)The Minister shall prescribe additional conditions for the operation of a local railway in respect of which an operating permit has been granted and for maintaining its proper functioning, which the holder of the operating permit must fulfil during the period of validity of the permit, and may, inter alia, prescribe conditions on the following matters:
(1)The means required for the proper operation of the local railway, including a fleet of local trains and vehicles, its scope, the types of vehicles to be included in it, its maintenance and renewal, as well as technological means, including means for monitoring the movement of the local train and real-time fleet management systems and means that will enable monitoring of the operating permit holder's compliance with the conditions of the permit;
(2)The infrastructure required for the operation of a local train, including stations, parking areas for the local train and a customer service system;
(3)Benchmarks regarding the level, standard and quality of the services that the permit holder is required to provide to the public of passengers;
(4)The technological means required for the purpose of transmitting information to the public of passengers on the local train in all matters relating to the movement of the local train, including public information systems, their operation and maintenance, as well as the manner of transmitting information for the purpose of its reception by information and operations systems;
(5)The submission of reports to the Director, on matters and at times to be prescribed in such Regulations or upon the Director's demand, regarding the activity of the operating permit holder, including its compliance with the conditions of the permit, as well as the maintenance of means necessary for the purpose of submitting such reports.
Amendment of an Operating Plan§
46k.
(a)The Director may, during the period of validity of an operating permit, require the holder of the operating permit to amend the operating plan approved under the provisions of section 46g(2), if the Director has found that this is required for the purpose of the proper and orderly operation of the local railway in respect of which the permit was granted and for maintaining its safety, and after having given the operating permit holder an opportunity to present its arguments in that regard; if the Director has so required, the permit holder shall submit to the Director a written proposal for the required amendment, for approval by the Director.
(b)If the holder of an operating permit requests to amend the operating plan approved by the Director, the permit holder shall submit to the Director a written proposal for such an amendment; the Director may approve the requested amendment, approve it subject to conditions, or refuse to approve it.
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Contact Us →Section G: Operations Manager
Operations Manager – Appointment and Licensing Obligation§
46l.
(a)The holder of an operating permit shall appoint one or more persons to coordinate the professional activity of the permit holder and to carry out actions on behalf of the permit holder for the purpose of fulfilling its obligations under this Ordinance (in this Chapter – operations manager); the Minister shall prescribe provisions regarding the appointment of an operations manager by the holder of an operating permit.
(b)A person shall not serve as an operations manager unless an operations manager licence has been granted to that person under this Section and in accordance with the conditions and restrictions prescribed in the licence and the provisions under section 57(a)(12); the operations manager shall be employed by the holder of the operating permit or by a person on its behalf.
Period of Validity of an Operations Manager Licence§
46m.
An operations manager licence shall be valid for a period of eight years.
Prohibition on Transfer of an Operations Manager Licence§
46n.
An operations manager licence is personal and is not transferable.
Conditions for the Grant or Renewal of an Operations Manager Licence and Conditions in the Licence§
46o.
(a)The Director shall grant an applicant an operations manager licence or renew it, if all of the following conditions are met:
(1)One of the following applies to the applicant:
(a)The applicant is an engineer registered in the register of engineers and architects as defined in the Engineers and Architects Law, 5718-1958, in one of the divisions listed below, with at least ten years of experience as an engineer in the field of one of the said divisions, of which at least four years in a managerial position in the field of operation and maintenance of a local train, and has successfully passed the operations manager certification examinations held by the Director or approved by the Director, in accordance with the provisions under section 57(a)(11) (in this section – operations manager certification examinations):
(1)railway engineering;
(2)civil engineering;
(3)mechanical engineering;
(4)electrical engineering;
(5)aeronautical engineering;
(6)industrial engineering and management;
(b)The applicant has served as an operations manager on behalf of an operator of a local train for at least six years out of the ten years preceding the date of submission of the application for a licence;
(2)The applicant has not been convicted of an offence which, by reason of its nature, gravity or circumstances, renders the applicant unfit, in the opinion of the Director, to receive an operations manager licence, and no indictment is pending against the applicant on suspicion of committing such an offence;
(3)The applicant has submitted to the Director a medical opinion from an occupational physician stating that the applicant is medically fit to serve as an operations manager.
(b)Notwithstanding the provisions of subsection (a), the Director may grant an applicant an operations manager licence, in the first four years following the grant of the operating permit in respect of the local railway in which the applicant seeks to be employed as an operations manager, even if the conditions prescribed in subsection (a)(1) are not fulfilled in respect of the applicant, if one of the following applies:
(1)The applicant served in a managerial position connected with the operation and maintenance of a local railway for at least three years out of the six years preceding the date of submission of the application for a licence, and has successfully passed the operations manager certification examinations;
(2)The applicant served in a managerial position connected with the construction of a local railway and also in a managerial position connected with the operation and maintenance of a local railway for at least two years out of the six years preceding the date of submission of the application for a licence, and has successfully passed the operations manager certification examinations;
(3)The Director is satisfied that the applicant possesses the qualifications required to serve as an operations manager, in light of the applicant's experience, training and education in fields connected with the operation and maintenance of a local railway, and the applicant has successfully passed the operations manager certification examinations.
(c)Notwithstanding the provisions of subsection (b), the Director may, in exceptional circumstances and for special reasons that shall be recorded, during the six years following the end of the four-year period referred to in the preamble of that subsection, grant an applicant an operations manager licence, even if the conditions prescribed in subsection (a)(1) are not fulfilled in respect of the applicant, provided that one of the conditions referred to in subsection (b) is fulfilled in respect of the applicant.
(d)Notwithstanding the provisions of subsections (a) to (c), the Director may refuse to grant an operations manager licence to an applicant in respect of whom the conditions prescribed in those subsections are fulfilled, if the Israel Police or the General Security Service has brought to the Director's attention that there is a concern that the grant of a licence to the applicant may harm public safety or State security.
(e)The Director may prescribe in an operations manager licence conditions and restrictions that shall apply to the licence holder during all or part of the period of validity of the licence.
Restriction, Suspension, Revocation of an Operations Manager Licence or Refusal to Renew It§
46p.
(a)The Director may, by a reasoned decision in writing and subject to the provisions of subsection (b), restrict an operations manager licence, suspend it until conditions prescribed by the Director are fulfilled, revoke it or refuse to renew it, upon the occurrence of any of the following, provided that the Director has given the licence holder and also the operating permit holder and the person on its behalf by whom the operations manager is employed an opportunity to present their arguments in that regard:
(1)The licence was granted on the basis of false information;
(2)The licence was granted on the basis of incorrect information and there is reasonable ground to assume that had it been known to the Director the licence would not have been granted;
(3)A condition of the conditions for the grant or renewal of the licence under section 46o has ceased to be fulfilled in respect of the licence holder;
(4)The licence holder has breached a condition or restriction in the licence.
(b)The Director shall not revoke or suspend an operations manager licence under the provisions of subsection (a)(3) or (4), unless the Director has first demanded that the licence holder fulfil the condition that has ceased to be fulfilled or that has been breached as referred to in that subsection, within a period prescribed by the Director, and the licence holder has failed to do so; the provisions of this subsection shall not apply if the condition that has ceased to be fulfilled or that has been breached cannot be fulfilled.
(c)The Director's decision under this section shall be served on the licence holder, the operating permit holder and the person on behalf of the permit holder by whom the operations manager is employed.
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Contact Us →Section G-1: Acquisition of Rights in Real Property for the Purpose of the Construction or Operation of a Local Railway
Definitions – Section G-1§
46p1.
In this Section –
"road" and "plan" – as defined in the Planning and Building Law, 5725-1965;
"Law for the Amendment of Acquisition Laws" – Law for the Amendment of Acquisition Laws for Public Purposes, 5724-1964;
"local railway operator" – any of the following:
(1)the holder of an operating permit;
(2)a person who holds a concession to operate a local railway under section 46a(a) or a government company with which the Government has contracted for the operation of a local railway, whom the Director has confirmed to be in the process of obtaining an operating permit;
"local railway constructor" – a person who holds a concession to build a local railway or a government company with which the Government has contracted for the construction of a local railway;
"local railway real property owned by a local authority" – local railway real property in which a local authority has a right or in respect of which a local authority has a right, as well as local railway real property of which a local authority has taken possession and in respect of which notices have been published under sections 5 and 7 of the Lands Ordinance;
"local railway real property" – any of the following:
(1)real property designated under the plan applicable to it for a local railway, or real property in respect of which, under the plan applicable to it, assembly areas for the purpose of constructing a local railway or a road may be established;
(2)real property designated under the plan applicable to it for a road and which, in accordance with that plan, may also be used for a local railway;
"Lands Ordinance" – the Lands Ordinance (Acquisition for Public Purposes), 1943.
Acquisition of Rights in Real Property Owned by a Local Authority for the Purpose of the Construction or Operation of a Local Railway§
46p2.
(a)If the Minister, on an application by a local railway constructor or a local railway operator under section 46p3, is of the opinion that for the purpose of the construction or operation of a local railway it is necessary to acquire rights in local railway real property owned by a local authority, the Minister may acquire ownership or any other right, including possession or use (in this Section – rights), in such real property or part thereof, or impose restrictions on the rights in such real property or part thereof, for a period or in perpetuity (in this Section – acquisition of rights in local railway real property owned by a local authority).
(b)The provisions of the Lands Ordinance and the Law for the Amendment of Acquisition Laws shall apply to the acquisition of rights in local railway real property owned by a local authority under this Section, unless other provisions are prescribed under this Section.
Application for the Acquisition of Rights in Local Railway Real Property§
46p3.
(a)A local railway constructor or a local railway operator may apply to the Minister for the acquisition of rights in local railway real property owned by a local authority, in accordance with the Minister's authority under section 46p2 (in this Section – application); the application shall set out the local railway real property that is the subject of the application, the nature of the rights whose acquisition is sought, the purpose for which the acquisition of rights therein is sought, the requested date for taking possession thereof, as well as any other detail prescribed by the Minister.
(b)Upon the submission of an application, the applicant (in this Section – applicant) shall transmit a copy of the application to the local authority in whose ownership the rights in the local railway real property are vested.
(c)The local authority shall submit its response to the application to the Minister (in this Section – response to the application) within 21 days from the day on which the application was transmitted to it.
(d)The Minister, after consulting with the Minister of the Interior, shall decide on the application within 60 days from the day of the submission of the response to the application, or, if no response to the application was submitted – from the last date for the submission of a response to the application under subsection (c).
(e)The Minister shall communicate the Minister's decision on the application to the applicant and to the local authority in whose ownership the rights in the local railway real property are vested.
(f)If the Minister has decided to accept the application and to acquire rights in local authority railway real property that is the subject of the application, or part thereof, the Minister's decision shall set out the date for the acquisition of the rights, including the taking of possession of the real property if required; notice of the Minister's decision as aforesaid shall be published in Reshumot (Official Gazette).
Entry onto Real Property and Taking of Possession§
46p4.
If the Minister has decided under section 46p3 to acquire rights in local railway real property owned by a local authority, the Minister as well as the applicant or a person on the applicant's behalf may enter the real property and take possession thereof, on or after the date prescribed in the Minister's decision, provided that if 60 days have elapsed from the date prescribed in the Minister's decision as aforesaid and possession has not yet been taken, the Minister shall notify the local authority, in writing, of the date for the taking of possession at least 30 days in advance.
Conveyance of Rights to the State and Their Registration§
46p5.
(a)Upon publication in Reshumot (Official Gazette) of a notice of the Minister's decision under section 46p3 to acquire rights in local railway real property owned by a local authority, the rights of the local authority in the local railway real property shall be conveyed to the State, free of any charge or other debt.
(b)Upon publication of a notice under subsection (a), the Land Registrar shall make the required registrations in the land registers as if this were a notice under section 19(2) of the Lands Ordinance.
Determination of the Value of Rights for the Purpose of Payment of Compensation to a Local Authority§
46p6.
(a)The Chief Government Assessor or a person on the Chief Government Assessor's behalf shall determine the value of the rights in the local railway real property owned by a local authority that have been decided to be acquired under this Section, for the purpose of payment of compensation to the local authority; a copy of the assessment shall be delivered to the Minister, to the local authority and to the applicant.
(b)A local authority that disputes a real property assessment determined under subsection (a) may apply to the objections committee established under section 9a of the Lands Ordinance; the provisions under the Lands Ordinance shall apply to the submission of an objection and to the rules of procedure, with necessary modifications.
(c)A decision of the objections committee as referred to in subsection (b) may be appealed before an administrative affairs court.
Limitation on Application in respect of a Permit§
46p7.
The provisions of section 22(2b) opening words of the Land Ordinance shall not apply to a permit granted by the Minister to NTA – Metropolitan Mass Transit System Ltd. in respect of local railway real property.
Regulations – Section G-1§
46p8.
The Minister, in consultation with the Minister of Justice and with the approval of the Economics Committee of the Knesset, shall prescribe provisions in respect of this Section, including in respect of the following matters:
(1)the submission of an application and the documents to be attached thereto;
(2)the submission of a response to an application and the documents to be attached thereto;
(3)the extension of the time limit for submitting a response to an application, for special reasons.
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