The Spanish rail giant had planned to build a lightwail between Jerusalem and the West Bank. Now has a problem

The Basque CAF It is found In the international view for its participation in the Jerusalem Railway Project, which connects Israeli settlements considered illegal by the United Nations. The pressure on the company has intensified after appearing cited in An official report of the UN on companies that benefit from the occupation.

A dispute project. CAF has been part of a consortium with the Israeli Shapir since 2019 to build and expand the red and green lines of the Light Jerusalem Rail. The project, valued at 1.8 billion euros, includes 27 kilometers of new roads and 50 stations that connect settlements in the West Jerusalem. The Basque company would take more than 500 million euros for construction and equipment, in addition to its participation in management for 15 to 25 years.

Why is it problematic. The UN Special Rapporteur, Francesca Albanese, has included to CAF in its report “of the economy of occupation to the economy of the genocide”, presented before the Human Rights Council. According to the document, these infrastructure “contribute to the maintenance and consolidation of illegal settlements” and connect the colonies with Israel “while excluding and segregating the Palestinians.” The Human Rights Council itself declared the project illegal in 2016 and 2017.

The pressure intensifies. Amnesty International has been asking CA for years to leave the project. “CAF cannot continue looking the other way and not meet international recommendations,” affirms Esteban Beltrán, director of the NGO in Spain. The organization also claims the Spanish government and the Basque Government, a shareholder of the company, to evaluate the CAF links with “the illegal behavior of Israel.”

Others are retiring. The case It is not isolated. In 2024, the Catalan Comsa withdrew from the consortium that had won the construction of the blue line of the Jerusalem tram. The Basque Acerera Sidenor also announced that it will stop serving steel to Israeli companies. International funds such as the Norwegian sovereign have retired their participations from Shapir, a partner of CAF, and the manager Storeband excluded CAF from his portfolio for his participation in the project.

CAF’s response. The company maintains in its sustainability reports that “no violation of human rights has been detected” derived from their participation and describes the territories as “object of political controversy.” However, for international organizations, CAF is obviating the resolutions of the UN Security Council, the European Union and the International Court of Justice on the illegality of settlements.

Between the lines. The project places CAF at a crossroads between commercial interests and international pressure. Your shareholders include to the Basque Government, Kutxabank, the Matrix of the Mayoral Textile and the workers themselves with 25% of the shares. Meanwhile, the geopolitical context has hardened after the attacks of October 7 and the Israeli response in Gaza, increasing international scrutiny over any company linked to occupied territories.

Cover image | Alexander Berezhnoy

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