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22.08.2017 13:41

First step of extroversion from Urban Rail Transport S.A.





First step of extroversion from Urban Rail Transport S.A.

Today, Thursday, August the 3rd a M.O.U. Pre-tender agreement was signed, which concerns the participation of Urban Rail Transport S.A. in a consortium which will claim the financing, construction, operation and maintenance of the Metro “Green Line” Light Rail Track for the city of Jerusalem.

The relevant tender is in the pre-qualification phase of the consortiums which will participate in the final process, as November 9th, 2017 was appointed as the submission date for the tender envelopes, based on which the tenderers will be evaluated. Following this process, the tenderers will be invited to submit their technical and financial offers.

The estimated cost for the construction of the project amounts to approx. 2 billion euros, while the total investment in the fixed-track transportation sector amounts to 12,5 billion euros.

The participants of the consortium which will claim the project are:

The Israeli Pangea Israel Projects, whose parent company Pangea Group Limited is specialized in large projects in the areas of transportation, constructions and energy, internationally.  Pangea Israel Projects undertakes the role of the coordinator for the complete and accurate submission of the tender envelope for the pre-qualification process but also subsequently for the main tender.

The American company IDT Telecom, whose parent company IDT Corporation employs more than 1000 persons, in more than 20 countries, has  annual revenues of approx. 1,5 billion dollars. It is also listed in the NYSE and constitutes the main financier of the consortium.

STASY – Urban Rail Transport S.A. which will undertake the operation and maintenance of the project for an estimated exploitation period of 15-20 years.

The Chinese company “China Railway Engineering Group Co. LTD (CREGC) is a state-owned company, subsidiary of the company China Railway Group Limited, which will undertake the construction of the project as well as the supply of rolling stock.

In accordance with the terms of the tender, the companies which participate in any form of consortium are divided into “Members” (IDT Telecom, Pangea Israel) which possess percentage of the consortium and “Experience Providers” (STASY – Urban Rail Transport and CREGC) which should be able to meet the minimum requirements, in terms of experience, as these are described within the terms of the tender.  It is noted that the way of participation of STASY-Urban Rail Transport S.A., as an Experience Provider, allows the company to participate without any financial burden and without the requirement of a letter of guarantee.

In the whole effort there will be participation of other companies with a distinct work subject, e.g. the company S. Horowitz & CO, which will be the legal advisor of the consortium.    

It is worth noting that during the period July 25th – July 27th, 2017 a company delegation, headed by Mr. Georgios Thomopoulos, CEO of STASY - Urban Rail Transport S.A. went to Israel and met the representatives of the other companies, within the framework of the effort made to undertake a project in Jerusalem.  The meeting took place, after the invitation from Pangea Israel Projects, whereas since June 9th, 2017, the participation of STASY - Urban Rail Transport S.A. in that consortium was agreed, following the approval of OASA-Transport for Athens S.A.

During the stay of the delegation of STASY-Urban Rail Transport at Israel the profile of each company was presented and there was a discussion concerning the technical and operational characteristics of the companies, as well as the procedural matters related to the bidding process.  Also, there was a meeting with the Tender Committee in which the participating companies were informed about the tender subject, the details of the bidding process and other related issues.

Finally, there were visits to a section of the “Green Line”, where construction works have already been implemented related to the conformation – infrastructure and also to the already operational “Red Line”.


During today’s event for the signing of the memorandum of understanding

there were salutations from Mr. Stavros Stefopoulos, President of STASY-Urban Rail Transport S.A., as well as from the Deputy Minister of Infrastructure, Transport and Networks, Mr. Nikolaos Mavraganis and also from Mrs. Penny Douti, Advisor to the Minister of Infrastructure, Transport and Networks, Mr. Christos Spirtzis.


Mr. Stavros Stefopoulos pointed out the importance of the participation of STASY - Urban Rail Transport S.A. in a strong consortium, which will claim the financing, construction, operation and maintenance of the “Green Line”, of the Light Rail Track for the city of Jerusalem and stressed that “with this move we implement a more general national goal, making the first step towards the extroversion of the greek public enterprises at markets outside Greece”.

STASY-Urban Rail Transport, he added, “having the experience and expertise from the operation of fixed track means of Athens, fulfills the requirements in terms of experience, as these requirements are described within the terms of the tender and for this reason STASY-Urban Rail Transport S.A. was chosen from the heads of the consortium to undertake as Experience Provider, the operation and maintenance of the project, for a duration of 15-20 years, a development which will have obvious benefits for the company itself as well as for the Greek economy in general”. “With the participation of STASY – Urban Rail Transport in this bidding process”, concluded, “the path is opened for the participation of STASY-Urban Rail Transport S.A. and other public enterprises also in other foreign projects, as it seems that the abilities and the expertise of the Greek enterprises and their teams of executives are now recognized”.


Mr. Nikolaos Mavraganis stressed that “this is an important day for reasons of substance and symbolism.  The substance is that STASY-Urban Rail Transport,  an expertise conductor for Greece participates in a consortium and claims with pretensions a significant project at the region of a geostrategic partner for Greece, in the Eastern Mediterranean.  The symbolism is that Greece of yesterday, Greece of stagnation, isolation, univocal external economic policy ceased to exist and in its place begins a cycle of friendly attack towards those geostrategic partners of ours, with which we feel closer and towards also to those who maybe later come closer to us.”. Greece highlighted the Deputy Minister “is making today an important step and STASY-Urban Rail Transport constitutes a part of this planning. We would like to give many thanks to the Board of Directors who, in execution of government policy puts into practice exactly the dream of Greek women and men:  Greece of tomorrow and not Greece of the black yesterday”.


Mrs. Penny Douti conveyed a greeting on behalf of Mr. Christos Spirtzis, Minister of Infrastructure, Transport and Networks, pointing out that “the deepening cooperation between Greece and Israel also includes the sectors of freight transport, urban transportation and infrastructures”. “This cooperation”, she stressed, “is necessary for the mutual benefit of all the parties involved and will have a significant contribution to the progress, the economic growth and stability in the eastern Mediterranean region”. “The implementation of these political decisions is done in various levels. The recent visit of Mr. Christos Spirtzis, Minister of Infrastructure, Transport and Networks to Israel had the objective, among others, to promote also the nominations of the Greek public companies for the undertaking of projects which were planned and declared by Israel, including the nomination of STASY-Urban Rail Transport S.A.”. “We are”, she concluded, “very happy for today’s agreement because finally the effort to give to public companies the opportunity to prove that they can exhibit training, know-how, high expertise and effectiveness takes shape.





The Consortium and the Project


In continuation of the event, Mr. Georgios Thomopoulos, CEO of STASY-Urban Rail Transport, Mr. Rafi Kaminer, CEO of Pangea Israel Projects and Mr. Ohad Gold, Finance Director of IDT Corporation made a presentation of the consortium and the project.


Mr. Georgios Thomopoulos, referring to the presence of STASY-Urban Rail Transport stressed that “we already know, from the beginning, that this path won’t be easy. However, we are professionals, we want to work hard and we are confident because we have a very strong international team. USA, China, Israel, Greece. This is an excellent combination and we are convinced that the trip will be extraordinary.”.  As far as the specific project is concerned, he pointed out that STASY-Urban Rail Transport in the consortium we participate has the operation and maintenance. If all goes well and we undertake the project we will acquire the right of exploitation and maintenance of the “Green Line”, a new line, for a duration of 15 to 20 years. I think it is absolutely  clear what benefit can be derived. Not only financial benefit but multiple benefits.”.  “We”, he added, “participate in this consortium as an experience provider. This is good for us because there will be no financial burden for the company and there will be no requirements for a letter of guarantee. We participate as experts, in a specific context, which is very important for us”.

“There is”, he concluded, “a very good cooperation with the partners and the thing that impressed me was the fact that among the criteria for our choice were the common culture, the common understanding of things that we share with the Israelis”.


Mr. Rafi Kaminer initially shared his impressions from today’s visit to facilities of STASY-Urban Rail Transport, pointing out that “during our presence at the Depot and the Operation Control Center we realized how lucky we are and that our decision to choose STASY-Urban Rail Transport as a partner is really a wise decision.  If this experience is transferred to Israel, it will be something amazing, the impact will be very positive for both sides”.  “We always want”, he added, “to have, on the other side, the suitable partners and make the right steps before participating in a tender, we want everyone to have the right skills”. The CEO of Pangea, referring to the total investments of Israel in public transport, stressed that “for the next 15 years approximately 40 new metro lines and lightweight trains are planned for all Israel, a fact which means that we begin with this first project in Jerusalem, which will give us the chance to cooperate and also move on to other projects, during this period.”


Mr. Ohad Gold in his introduction noted that Mr. Jonas, the founder of IDT and his family created a number of companies which are listed on the New York Stock Exchange and that “the company is engaged with telecommunications and other sectors, e.g. pharmaceutical industry etc.” As far as the specific project is concerned, he stressed that “when we were thinking about who would be the best partner for the lightweight metro at Jerusalem, we examined many candidates and we had many criteria. We made a list and always STASY-Urban Rail Transport was at the top of the list and today, when we visited its facilities, we realized why this company was on the top companies of our list.  Its know-how, its experience, all these factors contributed in considering STASY-Urban Rail Transport as the obvious choice”. “Our relationship”, he added, “begins today and ends after several years, because the relationship with the operator is a long-term relationship and the existence of a good relationship is very important. We believe that the operator, in any activity, at the metro and at the tram holds a key role for the economic success of the project”.  Now, he concluded, “I can say that we are proud for the fact that STASY-Urban Rail Transport, which is responsible for the administration and maintenance of the network of Athens and which essentially serves 1 million passengers daily is a serious company and we are    

confident that a company which operates in the historic center of Athens will be the ideal partner in order to produce a transportation system for the city of Jerusalem».