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Israel
TRANSPORTATION AND COMMUNICATIONS
Beginning in 1948, the government invested large sums to develop
a first-class transportation infrastructure. The main projects
undertaken were the construction of the Qishon element of the
harbor at Haifa and the Ashdod port, the building of railroads
between Haifa and Tel Aviv and from Tel Aviv south to Beersheba,
Dimona, and Zin, and the construction of several major roads in
the center of the country as well as many new roads in peripheral
regions .
Rapid economic growth and the removal of the limitation on importing
private cars and buses created a growing demand for transportation
services in the early 1960s. This demand was met by increased
public transportation services and by private transportation expenditures.
In 1984 the subsidy on public transport equaled US$13 million.
In 1985 Israel's 13,410 kilometers of roads were used by 776,000
vehicles, of which about 624,000 were private cars, about 115,000
were trucks and other commercial vehicles, and about 5,500 were
buses. In 1988 there were two main public carriers--Egged, with
about 4,000 buses operating throughout the country, and Dan, with
approximately 1,500 buses. Both of these carriers were cooperatives
that charged subsidized tariffs determined by agreement with the
government.
Israel also had a government-run railroad system. In 1986 there
were 528 kilometers of state-owned railroad linking Jerusalem,
Tel Aviv, Haifa, and Beersheba. The government had a long-term
plan to extend the Beersheba line along the Dead Sea and south
to Elat and to develop a rapid rail line from Petah Tiqwa to Tel
Aviv. Total railroad passenger traffic was 2,814,000 in 1985,
and total freight carried (primarily phosphates, grains, coal,
and potash) was 6,086,000 tons. Given the government status of
the rail system, however, it could not compete with other transportation
modes. Between 1965 and 1985, railroad use declined because of
cutbacks in rail services. In 1986 travel by truck or car was
faster than by rail on all lines except the Haifa-Tel Aviv line,
where it was identical.
As a result of Israel's geopolitical situation, almost 99 percent
of its trade was transported by ship. Thus, in the first twenty
years of statehood, the government made a special effort to build
a commercial fleet. In 1985 about 9,205 tons of freight were unloaded
at Israeli ports: 55 percent at Haifa, 39.3 percent at Ashdod,
and 5.7 percent at Elat. During the same year, 7,088 tons were
loaded: 22 percent in Haifa, 68.7 percent at Ashdod, and 9.3 percent
at Elat. In the 1970s, two additional, specialized ports were
opened: an oil terminal at Ashqelon and a coal terminal at Hadera.
These open-sea, offshore ports were operated by special port administrations
independent of the Israel Ports Authority.
The merchant fleet was 3,050,000 deadweight tons in 1984. The
main shipping companies were (in order of importance) Zim, El
Yam, Dizengoff, and Maritime Fruit Carriers. During the late 1960s,
two structural and technological changes took place in the shipping
industry. First, improved cargo-handling technologies and containerization
led to the use of more specialized ships. Second, ships increased
in size, especially bulk carriers and tankers. Despite these changes--and
the importance placed on sea transportation--Zim (owned by the
government, the Histadrut, and the Israel Corporation) and El
Yam continued to sell unprofitable old ships in the hope of becoming
profitable.
In 1988 Israel had one international airport at Lod, but special
charter flights also used smaller airports such as Qalandiyah,
near Jerusalem, and Elat. El Al, the government-owned national
carrier, flew a total of 36.3 million kilometers in 1984, carrying
1,450,000 passengers on 9,646 international flights. In 1985 approximately
455,000 passengers arrived in Israel on charter flights. Inland
air services were provided by Arkia Israeli Airlines, which operated
flights to major cities.
Like other developing countries, Israel has constantly battled
the excess demand for telecommunications services. The telecommunications
industry is characterized by its high capital intensity--it requires
a full cable network system. In 1988 Israel was still lagging
in the development of a telecommunications system adequate to
meet the needs of its clients. While the industry was expanding,
it continued to represent a major weakness of the economy.
Israel has long been plagued by delays in building new telephone
exchanges and laying cables to meet the growing needs of the citizenry,
businesses, and the new age of computer communication. Israel
had about 1.9 million telephones in FY 1986. More than 250,000
citizens, however, remained on waiting lists to receive telephones
that year. Some Israelis had been waiting seven or more years
for telephones. Around 99 percent of the telephones in Israel
were connected to the international direct dialing system.
Three ground satellite stations in 1988 facilitated satellite
connections between Israel and the rest of the world. Overseas
connections also were possible through underwater cables. In April
1988, Israel announced plans for a five-year telecommunications
development program, costing approximately US$2 billion. The plan
included an underground cable from Israel to Europe and the installation
of various satellite and cable television facilities. In addition,
a multicapacity transatlantic cable was being planned in 1988
to provide 600 channels for communication with the North American
continent. Furthermore, in May 1988 the cornerstone was laid for
a US$170 million Voice of America transmission relay station in
the Nahal HaArava north of Elat.
Data as of December 1988
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