The company may replace the operations of the public transport company ARRIVA in one district in Lisbon. The huge deal will make Dan the second largest public transport company in Portugal, where there is almost a monopoly, because only one company (Rede Expressos) owns the majority of the market. This is the first time that Dan has invested abroad.
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CEO Ophir Karni told Calcalist this morning that “regulation in Israel reduces our capabilities to grow, and naturally the direct alternative is to expand into new markets.” According to the CEO, ARRIVA has decided to sell its public transportation services in several countries, some in Scandinavia, some In Eastern Europe and one in Portugal.
ARRIVA is an international public transport company controlled by the German railway concern Deutsche Bahn. Karni said: “We competed in several countries and finally decided to focus on Portugal”, he said, the regulation and structure of public transport services in Portugal are similar to those in the country. ARRIVA has been operating in Lisbon for more than 20 years, and about a year ago won a new tender for 7-7 years – but now Dan will replace it.