The Ministerial Committee on Privatization approved the sale of the port of Haifa

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by Ifi Reporter Category:Government Jan 21, 2020

The Ministerial Committee on Privatization approved the sale of the port of Haifahe Gulf port, which will start operating in 2021, will be operated by SIPG, which operates, among other things, the Shanghai port in China. It is estimated that Chinese companies are expected to deal with the port acquisition in light of the potential for synergy between the two ports, as was recently done at the Piraeus port in Greece.
Finance Minister and Committee Chairman Moshe Kahlon said: "This is a significant move for the Israeli economy to strengthen Haifa port and competition in ports. This move is a necessary move, which the government has been promoting for several years. "The director of the Israel Business Authority, Jacob Coin, noted that" the decision promotes port reform and will put the Haifa port company in a strong financial position with the opening of competition with the private port. "
Chairman of the Board of Haifa Port Eshel Armoni, after the decision of the Ministerial Committee, added: "Approval of the plan constitutes a two-year termination of work, as part of a strategic process that will allow the port of Haifa to survive and succeed in a competitive environment."
Haifa Port is the third largest port to be privatized and the largest to date. In 2007, the state allowed Israeli shipowners businessmen Shlomo Shmeltzer Shlomi Vogel and Goldbound to operate the first private port in the shipyard area. In 2013, the state sold the franchise to operate the port of Eilat to Nakash Brothers, which later sold a third of the company's shares to Vogel. In the past, Ashdod port workers tried to promote the port's sale to a private investor - but the move torpedoed the Histadrut's resistance.
In 2021, two new private ports will be established in Ashdod and Haifa: the Haifa Bay port operated by the Chinese SIPG company and the southern port in Ashdod to be operated by TIL from Switzerland. The competition is expected to severely damage the revenues of the port of Haifa, which will absorb over 50% drop in container traffic to and from the first year of operation of the private port.

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