The Controversial Role of CAF in the Jerusalem Railway Project
The Basque company CAF (Construcciones y Auxiliar de Ferrocarriles) is currently facing significant scrutiny due to its involvement in the Jerusalem Railway Project. This initiative aims to connect Israeli settlements that have been deemed illegal by the United Nations. The pressure on CAF has mounted dramatically since its mention in an official UN report highlighting companies benefiting from the occupation.
A Disputed Project
Since 2019, CAF has collaborated with the Israeli company Shapir to extend the red and green lines of the Light Jerusalem Rail. The project’s estimated cost stands at a staggering 1.8 billion euros, which encompasses the construction of 27 kilometers of new rail lines and the establishment of 50 stations designed to connect Israeli settlements throughout West Jerusalem. From this vast sum, CAF is set to profit over 500 million euros for construction and equipment, alongside its management role for a span of 15 to 25 years.
Why is it Problematic?
The UN Special Rapporteur, Francesca Albanese, has explicitly included CAF in a report labeled “from the economy of occupation to the economy of genocide,” which was presented to the Human Rights Council. This report asserts that the infrastructure in question “contributes to the maintenance and consolidation of illegal settlements” and facilitates a connection between these settlements and Israel, while simultaneously excluding and segregating Palestinian communities. The Human Rights Council had previously declared the project illegal in two separate resolutions in 2016 and 2017.
The Pressure Intensifies
Amnesty International has long urged CAF to sever ties with this contentious project. “CAF cannot continue looking the other way and not adhere to international recommendations,” argues Esteban Beltrán, director of the NGO in Spain. The organization is also calling on the Spanish government and the Basque Government, which holds shares in CAF, to review the company’s associations with “the illegal actions of Israel.”
Others Are Retiring
The situation surrounding CAF is not an isolated case. In 2024, the Catalan company Comsa withdrew from the consortium awarded the construction of the blue line of the Jerusalem tram. Similarly, the Basque steel producer Acerera Sidenor has announced plans to stop supplying steel to Israeli firms. Additionally, international investment entities, including the Norwegian sovereign fund, have retracted their investments from Shapir, a partner in the CAF project, while asset manager Storebrand has excluded CAF from its portfolio due to its involvement in the disputed project.
CAF’s Response
In its sustainability reports, CAF asserts that “no violations of human rights have been detected” related to its participation in the project. The company somewhat dismissively describes these territories as being “objects of political controversy.” However, international organizations contend that CAF is ignoring directives from the UN Security Council, the European Union, and the International Court of Justice regarding the illegality of the settlements.
Between the Lines
CAF now finds itself at a pivotal crossroads, tangled between commercial interests and mounting international pressure. Key shareholders in the company include the Basque Government, Kutxabank, the Matrix of the Mayoral Textile, and the workforce, who own 25% of the shares. The geopolitical climate has further deepened since the attacks of October 7 and the corresponding Israeli military response in Gaza, which has increased global scrutiny on any entity associated with occupied territories.
The ongoing situation surrounding CAF and its involvement in the Jerusalem Railway Project illustrates the complex interplay between business, ethics, and international law. As the call for accountability grows louder, the implications on both CAF and the broader geopolitical landscape remain profound.