Israel Railways CEO Moshe Zhena Resigns Amid Criticism Over Electrification Project Delays

 Moshe (Shiko) Zhena, CEO of Israel Railways, announced his resignation during a meeting of the company’s board of directors, marking the end of his two-year tenure. The announcement follows weeks of speculation after Zhena went on personal leave, though he initially denied reports suggesting he would step down.

Zhena’s resignation comes in the wake of mounting criticism over delays and inefficiencies in key infrastructure projects, most notably the national railway electrification project. A damning audit report issued by the Polak inspection company—commissioned by the Ministries of Finance and Transportation—raised serious concerns over the project’s slow progress and failure to meet targets.

Electrification Project Faces Scrutiny

The electrification initiative, awarded in 2015 to the Spanish firm SEMI, was designed to modernize Israel’s rail system but has suffered repeated setbacks. The recent report accused the project of “unnecessary delays and procrastination.” Zhena defended the project, stating its progress was “in line with the approved plan,” attributing minor delays to external documentation issues.

However, officials at the Ministry of Finance expressed dissatisfaction, which intensified oversight and prompted the Accountant General to hold a series of project control conferences.

Ongoing Challenges During Tenure

Zhena’s time at the helm of Israel Railways was marked by criticism over several delayed infrastructure projects, including:

• The coastal track expansion

• Subdivision 108 for the Jerusalem rail extension

• The electrification program

These delays sparked frustration within the government, leading to increased involvement by state regulators and financial oversight bodies.

Leadership Background and Labor Relations

Zhena was appointed CEO in 2023 after previously serving as head of the Ashdod Port, where he earned a reputation for effectively managing labor relations with the port’s workers’ committee. Expectations were high that he would bring similar stability to the rail company.

However, his tenure at Israel Railways was plagued by repeated clashes with the workers' committee and internal operational crises, which overshadowed progress made under his leadership.

The board of directors is expected to initiate a search for a successor in the coming weeks.