CAF Defends Its Involvement in Jerusalem Light Rail Project Amid Rising Criticism of Foreign Companies in Israel

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Spanish manufacturer CAF (Construcciones y Auxiliar de Ferrocarriles) has responded robustly to increasing scrutiny over its involvement in the Jerusalem light rail project. The company, which is supplying 114 Urbos LRVs (light rail vehicles) to Jerusalem, has been facing mounting criticism for its role in a project connected to the ongoing Israeli-Palestinian conflict. The company issued a detailed statement defending its operations and outlining the extensive due diligence it conducted before and during the execution of the project.

As international pressure on foreign companies operating in Israel increases, particularly over their involvement in the ongoing conflict in Gaza, CAF emphasized its commitment to ethical business practices and human rights. The company is aware of the criticism directed at its participation in infrastructure projects in Jerusalem, especially regarding the impact of the light rail lines that connect Israeli settlements to West Jerusalem. These projects have been criticized for allegedly contributing to the Israeli government’s perceived illegal annexation of East Jerusalem. This criticism is part of broader international concerns about the ongoing situation in the region, with human rights organizations and political groups denouncing the Israeli government’s policies.

CAF holds a 50% stake in CFIR Light Rail, alongside Israeli firm Shapir Civil & Marine Engineering. The partnership won a contract in 2019 worth €1.8 billion to construct a 22km extension to the Green Line, along with a 6.8km extension to the Red Line in Jerusalem. The project is scheduled to be completed by 2027. Additionally, the companies are contracted to operate and maintain both lines for a period of 15 years, with an option to extend the agreement for up to 25 years.

CAF has also been responsible for providing the 114 Urbos LRVs for the Green Line, alongside other essential components such as signaling, communications, and power supply systems. The company is also refurbishing 46 Alstom Citadis LRVs operating on the existing Red Line. Despite the company’s significant contributions to the development of Jerusalem’s light rail system, it has faced backlash in Spain and other countries, with critics accusing CAF of indirectly supporting Israel’s policies in East Jerusalem.

In response to this growing criticism, CAF released a statement on September 25 defending its role and emphasizing the thorough due diligence procedures it followed before engaging in the project. CAF highlighted that it conducted a detailed legal analysis of the project prior to signing the contract. The analysis, performed with the assistance of independent experts, confirmed that there were no breaches of international law or human rights arising from CAF’s involvement.

CAF also pointed to its internal risk assessment, which concluded that the Jerusalem light rail project would have a positive, non-discriminatory impact, particularly by offering improved access to basic social services and providing a sustainable, eco-friendly infrastructure solution for all citizens of Jerusalem, including the Arab minority. The company reiterated its commitment to conducting business ethically and ensuring full compliance with human rights standards across its operations.

CAF has emphasized that it fully complies with international regulations and is committed to maintaining the highest standards of integrity, accountability, and transparency. To ensure ethical practices, the company has implemented a robust compliance system that covers its entire value chain, including third-party contractors. This system is designed to prevent any unethical conduct and to monitor any potential violations of human rights.

As part of its heightened due diligence process, CAF has adopted a three-tiered approach to assess the risks associated with the Jerusalem light rail project. These stages—general, enhanced, and intensified due diligence—are in accordance with the United Nations’ Guide on Heightened Human Rights Due Diligence for Business in Conflict-Affected Contexts. This comprehensive process ensures that CAF identifies and mitigates any adverse impacts on human rights during the execution of the project.

CAF’s statement underscores its dedication to monitoring potential issues related to ethics, human rights, and regulatory compliance throughout the lifecycle of the project. The company has also committed to remaining transparent and accountable, continuously prioritizing the monitoring of any significant issues related to its operations in Israel.

The ongoing debate over CAF’s involvement in the Jerusalem light rail project highlights the complex intersection of international business, human rights, and politics. As companies like CAF continue to operate in conflict zones, they are increasingly faced with questions about corporate responsibility and their role in situations where human rights violations may be occurring.

CAF’s stance, as outlined in their statement, highlights the challenges faced by global companies in balancing economic and business interests with ethical considerations. The company has repeatedly stated that its operations in Jerusalem, including the construction of the light rail lines, do not violate human rights but instead offer tangible benefits to the population. However, critics remain unconvinced, with calls for greater scrutiny of foreign companies operating in Israel.

CAF’s defense of its role in the Jerusalem light rail project comes at a time of heightened international scrutiny over foreign companies operating in Israel. While CAF maintains that its involvement adheres to legal and ethical standards, critics continue to challenge its participation in infrastructure projects connected to the ongoing Israeli-Palestinian conflict. The company’s commitment to transparency, due diligence, and human rights monitoring will be tested as the project progresses, and the broader debate surrounding corporate responsibility in conflict zones is likely to intensify in the coming years.