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Photographer: Ariel Jerozolimski<\/p><\/div>\n
Supply Lines<\/h4>\nIsrael Pushes to Sell Its Biggest Port as China Builds Rival<\/h1>\n
By Ivan Levingston
\nAugust 4, 2020, 11:00 AM UTC<\/p>\n
After years of delays, Israel is finally privatizing its largest seaport \u2014\u00a0just before it gets a serious rival next door.<\/div>\n
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Since the northern Port of Haifa was inaugurated in 1933, preceding even the state\u2019s foundation, it has served as the primary naval gateway for everything from waves of Jewish immigrants to container shipments.<\/div>\n
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But officials are now\u00a0pushing forward<\/a>\u00a0with a privatization plan meant to make it more competitive, right as Shanghai International Port Group Co. prepares to open an advanced harbor next year in the same city.<\/div>\n
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Officials want to sell the older Haifa port for as much as 2 billion shekels ($586\u00a0million), but regardless of the final price, the first 1 billion shekels from any deal will go into upgrades like building a new deep-water platform.<\/div>\n
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The privatization plan also calls for slimming down the workforce, and the government hopes to attract\u00a0strategic buyers<\/a>\u00a0by offering bidders a discount if they bring partners with expertise in fields like seaport management.<\/div>\n
\u201cIt\u2019s not the ideal time, but in any case, if we wait it\u2019ll be even more difficult to go forward with this,\u201d\u00a0said Eshel Armony, board chairman for the\u00a0Port of Haifa<\/a>. \u201cWe\u2019ll need people that come from the international business arena and bring new ideas, who can really help the company stand up to the competition.\u201d<\/div>\n
Extra revenues from the sale will go into Israel\u2019s coffers at a time when it\u2019s badly needed, because the deficit is ballooning to fund emergency aid during the Covid-19 pandemic. Israel is not alone in looking to port privatization to help raise funds and spur development, with nearby Greece also\u00a0moving ahead<\/a>\u00a0on similar plans.<\/div>\nU.S. Concerns<\/h3>\n
U.S. Concerns<\/h3>\nChinese state-owned SIPG\u2019s role at the new port had drawn concern from the U.S. because it\u2019s close to a dock used by American navy ships, and more broadly, Washington has\u00a0urged Israel<\/a>\u00a0to be cautious about Chinese investment in major infrastructure projects.<\/div>\nNevertheless, Israel doesn\u2019t plan to ban Chinese companies outright from bidding for the old port \u2014 though any offer will have to undergo a comprehensive vetting process as with any sale of a strategic asset.<\/div>\n\nWhile bidding will only seriously get under way later this year, there\u2019s already one player expressing interest: Eli Tilles, the Israeli businessman who won the bid to privatize the country\u2019s southern Eilat port a few years ago. \u201cThere\u2019s big potential for Haifa,\u201d he said.<\/p>\n
\u2014Ivan Levingston<\/a>\u00a0in Tel Aviv\u00a0<\/em><\/p>\n
Nevertheless, Israel doesn\u2019t plan to ban Chinese companies outright from bidding for the old port \u2014 though any offer will have to undergo a comprehensive vetting process as with any sale of a strategic asset.<\/div>\n
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While bidding will only seriously get under way later this year, there\u2019s already one player expressing interest: Eli Tilles, the Israeli businessman who won the bid to privatize the country\u2019s southern Eilat port a few years ago. \u201cThere\u2019s big potential for Haifa,\u201d he said.<\/p>\n
\u2014Ivan Levingston<\/a>\u00a0in Tel Aviv\u00a0<\/em><\/p>\n