The planned 350km railway line which will connect the ports of Tel Aviv and Eilat will provide a new alternative route for shipping cargo between Europe and Asia, with a promised journey time between the two cities of approximately 2 hours.
The expected cost of construction of the two track railway line is 8.6 billion Shekels.
The Government decision will see a committee set up to be chaired by Harel Locker the Prime Minister's Director General to consider how the railway line should be built, either through public funding, private funding or an agreement with another Government. The preferred option of the Transport Ministry is for the railway to be developed in conjunction with the Chinese.
The railway will not be completed until at least 2018.