officially signed: an agreement to privatize Haifa Port

Representatives of the State, the Histadrut and the workers' committees at Haifa Port have officially signed the agreement to privatize Haifa Port. The agreement completes the move approved by the government this month, allowing 100% of the port to be auctioned for at least 15 years by a private entity or investor group. The agreement includes the sale of container operations, vehicles and general cargo while upgrading the equipment there at least NIS billion. One-fifth of the approximately 1,000 port workers will retire early in the next three years, with the cost of retirement per first-generation worker estimated at NIS 2.7 million.
30 employees who wish to do so will be able to retire immediately in coordination with management. The remaining employees who remain in the port will be granted immunity from streamlining for a decade, as well as a government safety net of about 70% of wages and for that time period. The state hopes to complete the move in 24 months.
In early 2013, Eilat Port operations were sold to the Naksh brothers for NIS 120 million. The last port that has not yet undergone a similar procedure is the port of Ashdod, where disputes between the committees, the Histadrut and the management prevent progress on the issue.
Either way, the local shipping industry is undergoing a revolution that leads to the privatization of government companies: In two years two new and private ports will be opened in Israel, the southern Ashdod will be operated by the Dutch TIL, and the northern in Haifa will be operated by the Chinese government SIPG.
The signing of the agreement was chaired by the Histadrut, Arnon Bar-David, Chairman of the Transportation Workers Union, Avi Edri, Chairman of the Board of Haifa Port, Eshel Armoni, Port Director, Mandy Salzman, Director of the Government Companies Authority, Yankee Point, Deputy Director of the Government Companies Authority, Meir Shmara, Deputy Director of Wages, Efi Malkin, Director of Shipping and Ports Authority, Yigal Maor, Chairman of the Histadrut at the Haifa Port, Moshe Mizrahi, Representatives of the Committees at the Haifa Port and representatives of the Finance Ministry.
"We have reached a historic moment in one of the most important infrastructure sectors in Israel. We will continue to work until the reform of the port of Ashdod, which will improve public service and profitability of the entire economy," Bar-David concluded.