Government Approves Construction of Kedma Freight Terminal

Israel’s Kedma Freight Terminal will revolutionize the supply chain by replacing 1,000 trucks daily. Discover how this logistics infrastructure project tackles the 2025 aggregate shortage.


11:32 ,23.02.2026 From: PORT2PORT

The Israeli Government approved the Ministry of Transport and Israel Railways' plan to establish the "Kedma" freight terminal east of Kiryat Malachi. The terminal, with Phase A expected to be completed by 2030, will serve as a central logistics hub for transporting aggregates from the south to the center, as part of the national strategy to reduce road congestion.

 

The approval of the plan by the National Planning and Building Council marks a significant step in the implementation of National Outline Plan (TAMA) 14B. According to forecasts, a significant shortage of aggregates (gravel and sand) for construction and paving is expected in central Israel starting in 2025. The Kedma terminal is designed to bridge this gap by receiving freight trains from the Tamar and Mishor Rotem quarries.

 

In terms of capacity supply, each freight train unloading at the terminal will replace between 50 to 70 heavy trucks. At its peak, the terminal will handle a transport volume equivalent to 1,000 trucks per day in each direction, which is expected to significantly reduce infrastructure wear and air pollution on major routes.

 

The project joins a series of moves to expand the rail network, including new branches to the Bay Port and Israel Shipyards Port. In the coming year, infrastructure work to connect the "Iskoor" plant in Kiryat Gat and the "Gold Bond Conterm" terminal in the Haifa Port hinterland to the rail network is expected to be completed.

 

Regarding the supply chain, the chosen model focuses on Last Mile solutions: the railway will cover the bulk of the distance from the south, and from the terminal, materials will be distributed by trucks for short distances to construction sites in the Tel Aviv metropolitan area.

 

Israeli Minister of Transport Miri Regev stated: "The approval of the Kedma freight terminal plan is part of a comprehensive policy I am leading to strengthen the national rail network, improve connectivity between industrial centers, ports, and logistics hubs, and reduce road congestion. Increasing the volume of rail freight transport will help reduce traffic accidents, lower air pollution, and directly support the housing, infrastructure, and overall economy."

 

Acting CEO of Israel Railways, Avi Almaliah, added: "The Kedma freight terminal, along with the Mediterranean port terminals that have all been connected to the national network, allows rail freight transport to be accessible to industrial and logistics centers, thereby increasing the economic benefit to the national economy. Alongside this, we continue to promote development projects throughout the country that will contribute in the near future to national efforts to rehabilitate these areas, providing economic and transport strengthening, and improving the quality of life for residents."