Government approves Haifa Port privatization plans
The incoming owner will be required to invest approximately NIS 1 billion in the port, including the cost of upgrading infrastructure and financing the layoff of approximately 200 workers.
By EYTAN HALONA worker sits as a crane unloads containers from a ship at the port of Haifa(photo credit: REUTERS)
The government’s ministerial privatization committee approved plans on Tuesday to sell off the Port of Haifa, Israel's largest shipping hub.The vote will enable a private strategic investor to take full control of the northern port from the government-owned Haifa Port Company. The incoming owner will be required to invest approximately NIS 1 billion in the port, including the cost of upgrading infrastructure and financing the layoff of approximately 200 workers.The sale is expected to be completed within two years, with the new owner expected to operate the port until 2054."This is an historic moment that comes after two years of intensive work and a long-term strategic process, the purpose of which is to enable Haifa Port to flourish in a competitive environment," said Eshel Armony, chairman of the Haifa Port Board of Directors."Starting tomorrow morning, we must work to implement the privatization and identify buyers who will drive Haifa Port forward in the coming decades," he added.A new container terminal is also currently under construction at the Port of Haifa and is expected to commence operations during 2021. The Bayport Terminal will be operated for 25 years by Chinese company SIPG.In a move to advance the partial privatization of Israel Post, the committee also voted on Tuesday to enable private investment in the company. The government is expected to invite bids in March 2020 as it seeks to sell up to 40% of its shares in Israel Post.
