Generation has investments in the transportation field, both in Israel and abroad, and it views it as a strategic, cash-generating sector, with diverse growth opportunities.
There is clear global growth trend in the number of investments and transactions carried out in infrastructure of transportation activities. In Israel, this sector is receiving substantial financial resources, in a scale of tens of billions of shekels, a trend that is expected to continue in the coming decades. Public transportation is a vital service for any economy, characterized by solid investments with secured contracts that yield high returns over time.
In recent years, the transportation sector within Generation has grown significantly, with over a third of the company’s asset value now in this field. Since acquiring Bon-Tor, the revenue of the transportation company in Israel has surged from 300 million shekels at the time of purchase to over 1.5 billion shekels in 2023. This massive growth stems from Generation’s proactive policy, alongside the experienced management of the companies, which has led to successful bids in tenders, attractive M&A deals, operational efficiencies, and entry into related fields.
Leumi Partners holds a 27% stake in Bon-Tor alongside Generation, which has generated an internal annual rate of return of approximately 52%. Additionally, Generation has investments in transportation in the UK, holding a stake in the British rail company Porterbrook, one of the three largest ROSCOs in the UK, with a market share of about 23%. This investment provides Generation with a stable annual dividend at a low-risk profile.
Energy
Environment
Transportation
Logistics
