Gridlock Alert: Netivei Israel CEO Warns of Looming Transport Crisis in Gush Dan

In a candid and urgent address at the Globes “Infrastructure for the Future” conference, Nissim Peretz, the outgoing CEO of Netivei Israel, delivered a stark wake-up call regarding the state of Israeli transportation. With the authority of a decade-long tenure, Peretz warned that the Gush Dan metropolitan area is standing at the precipice of a systemic crisis, challenging the government’s timelines for the Metro project and calling for an immediate overhaul of national infrastructure management.

Strategic Infrastructure Brief

• Impending paralysis: Gush Dan faces a transportation “crisis preamble” with 200,000 new vehicles entering the roads annually.
• Metro skepticism: Peretz predicts the Tel Aviv Metro will exceed its 178 billion NIS budget and take longer than the projected 15 years to complete.
• Northern neglect: A sharp critique was leveled at the rehabilitation efforts in the North compared to the South, identifying the Kiryat Shmona railway as a critical, yet delayed, lifeline.
• Labor shortage: The sector is suffering a desperate shortfall of 7,000 engineers needed to execute existing plans.
• Leadership transition: After ten years, Peretz announced his intention to step down this year, expressing a desire to leave the corporate world entirely.

Is the Metro Timeline a Mirage?

Nissim Peretz did not sugarcoat his assessment of Israel’s flagship infrastructure project, the Tel Aviv Metro. While official estimates target 2037 for completion, Peretz expressed deep pessimism, suggesting the project will not be ready within the next 15 years. He argued that the current budget estimate of 178 billion NIS is unrealistic and will inevitably rise.

“People will continue to walk; who is going to suffer for 15 years?” Peretz asked, highlighting the disconnect between long-term planning and immediate public needs. He emphasized that paving more roads is a futile endeavor in the face of 200,000 new cars hitting Israeli roads every year. The only viable solution for Gush Dan—and increasingly the South—lies in high-speed trains, the Metro, and bicycle lanes. However, without a realistic timeline and budget, the center of the country risks grinding to a halt.

The Bureaucracy vs. The Builders

A significant portion of Peretz’s critique focused on the structural inefficiencies within the Israeli government. He described a system where brilliant macro-economists in the Ministry of Finance hold sway over veteran infrastructure experts, despite lacking the necessary field knowledge.

“It is difficult for a transport referent to manage Nissim, who has been dealing with infrastructure for 30 years,” Peretz noted. He called for a shift in power dynamics, urging the state to empower the management teams of government companies. Once a budget and decision are approved, he argued, CEOs must be given the autonomy to execute without constant bureaucratic interference. He described government decisions as often being treated merely as “recommendations,” leading to chronic failures in project deadlines.

A Tale of Two Regions: The North Left Behind?

In a passionate defense of the North, Peretz, a resident of the region, contrasted the rehabilitation efforts in southern Israel with the “total failure” of the Tekuma Directorate in the North. He lamented that while the South sees active restoration, the North remains stagnant.

Peretz identified the railway to Kiryat Shmona as the single most important development for the region. He argued that Kiryat Shmona has the potential to be an advanced, thriving city comparable to US standards, but has been held back by decades of underinvestment. “They replaced solar water heaters after Katyusha hits, but no one really invested in infrastructure or industry,” he stated. For Peretz, connecting the periphery via rail is not just transport policy; it is a national Zionist imperative to revive the region.

The Private Sector and the Eilat Line

Addressing the long-discussed railway to Eilat, estimated at 40 billion NIS, Peretz advocated for the Public-Private Partnership (PPP) model. He noted that institutional money is available and should be utilized. However, he offered a caveat based on the experience with Route 6 (the Trans-Israel Highway): regulation is essential.

“It is not fair to the public,” Peretz remarked regarding the high tolls of Route 6, warning that without proper state oversight (“policing”), private companies turn infrastructure platforms into monopolies. He insists that while the private sector is necessary to fund massive projects like the Eilat line, the state must ensure these assets remain accessible and fair for Israeli citizens.

Critical Infrastructure Gaps vs. Solutions

Strategic Action Items for Policymakers

• Decentralize Execution: Shift decision-making power from Treasury clerks to the CEOs of infrastructure companies immediately after budget approval.
• Prioritize the North: Accelerate the Kiryat Shmona railway project to signal a genuine commitment to Northern rehabilitation.
• Reform PPP Models: Create strict regulatory frameworks for future private-sector infrastructure projects (like the Eilat rail) to prevent predatory monopolies.

Glossary

• Netivei Israel: The National Transport Infrastructure Company of Israel, responsible for planning, developing, and maintaining the country’s interurban road network and railway tracks.
• Gush Dan: The metropolitan area of Tel Aviv, the economic and cultural heart of Israel, which faces the country’s most severe traffic congestion.
• Tekuma Directorate: A government body established to rehabilitate and develop the regions affected by conflict; Peretz criticizes its performance in the North.
• PPP (Public-Private Partnership): A cooperative arrangement between government agencies and private-sector companies to finance, build, and operate projects such as public transportation networks.
• Kiryat Shmona: The northernmost city in Israel, identified by Peretz as a key area requiring infrastructure investment to prevent economic stagnation.

Methodology

This article is based on a report of Nissim Peretz’s speech at the Globes “Infrastructure for the Future” conference, dated January 28, 2026. All quotes and data points—including the 200,000 annual vehicles, the 7,000 missing engineers, and the critique of the Metro timeline—are derived directly from the provided news text. The analysis reflects a pro-Israel stance, focusing on national resilience and the necessity of infrastructure development.

Frequently Asked Questions

Q: Why is the CEO of Netivei Israel pessimistic about the Metro project?
A: Nissim Peretz believes the complexity of the project, combined with Israel’s bureaucratic hurdles (“regulation and bureaucracy”), makes the current timeline of 15 years unrealistic. He also disputes the 178 billion NIS budget, anticipating costs will rise significantly, as is common with government mega-projects managed under current constraints.

Q: What does Peretz identify as the main obstacle to infrastructure progress?
A: Aside from budget, the primary obstacle is a lack of professional autonomy. Peretz argues that Ministry of Finance officials, who lack engineering or infrastructure experience, micro-manage projects. He believes that professional CEOs should be given the tools and authority to execute plans without constant interference once the government makes a decision.

Q: How does the situation in the North differ from the South according to this report?
A: Peretz describes the rehabilitation of the South as progressing, whereas he labels the Northern directorate’s efforts a “total failure.” He argues that for 20 years, governments have failed to genuinely invest in Northern infrastructure and industry, leaving cities like Kiryat Shmona behind. He views the railway connection as the only real solution to bridge this gap.

The Path Forward

Nissim Peretz’s parting words as he prepares to “go pick apples” are not merely complaints, but a roadmap. For Israel to maintain its economic edge and ensure the quality of life for its citizens, the government must treat infrastructure not as a series of bureaucratic hurdles, but as a national mission. The plans for 2030 through 2050 exist; the challenge now is to clear the regulatory roadblocks and let the builders build.

Final Takeaways

• Crisis is Imminent: Gush Dan cannot survive on roads alone; mass transit is the only way out of gridlock.
• Northern Imperative: The railway to Kiryat Shmona is essential for national equity and the rehabilitation of the North.
• Bureaucracy Kills Projects: Professional autonomy for infrastructure managers is the key to meeting deadlines and budgets.

Why We Care

Infrastructure is the backbone of national resilience. For Israel, a nation that prides itself on innovation and rapid development, a lagging transport sector threatens economic growth and social cohesion. Solving the gridlock in Gush Dan and connecting the periphery (North and South) to the center are not just logistical tasks—they are vital for maintaining Israel’s strength, security, and quality of life in the coming decades.