Haifa Port Chairman Criticizes New Arrangement in Israeli Ports

Ron Malka, Chairman of Haifa Port, responded to the new arrangement in Israeli ports following the amendment of the authorization letters of Haifa, Bay, Ashdod, and South ports. As recalled, on Sunday, the amendment to the authorization letters for the South Port, Bay Port, Ashdod Port, and Haifa Port was signed in the presence of Israeli Prime Minister Netanyahu, Minister of Transportation Miri Regev, Minister of Finance Bezalel Smotrich, and Minister for Regional Cooperation Dudi Amsalem.

The Ministry of Transportation stated following the signing that "this opens up new opportunities for the ports to expand their activities and improve their service, which will contribute to reducing the cost of living, streamlining the supply chain, and improving maritime services for the benefit of the economy and the citizens of Israel. The new arrangement will help alleviate congestion at the ports by opening additional lanes that will reduce waiting times and increase the rate of unloading."

According to the Chairman of Haifa Port, "The partial changes signed at the beginning of the week do not constitute an arrangement, but give gifts to some of the players, in the midst of negotiations, when not all the details are agreed upon, certainly not with us. This is a unilateral move that we are not part of. This is not a market arrangement - it's a market distortion. It's not real competition, it's hurting competition. Competition requires equal conditions for everyone. As we have warned all the time, this move endangers the livelihood of 700 employees at Haifa Port, who will not have a source of employment to pay their salary. We did not want to get to this place and did everything possible to avoid it. We are now studying the details in depth and will consider our steps accordingly."

It should be noted that on Monday, a discussion on the arrangement in the ports was supposed to take place in the Knesset's Economic Committee, but due to scheduling disruptions, the discussion was canceled and it is not at all clear if a discussion on the subject will take place, especially in light of the signing of the amended authorization letters.

As is known, the arrangement includes specific steps for each port, according to its characteristics and needs, in order to allow each of them to compete with the other ports under fair conditions:

Additional areas will be allocated to Haifa Port for logistical and commercial needs. The easements and regulatory adjustments in the port's activity will be expanded in order to provide the port with the necessary means to provide the best service.

The Bay Port will be authorized to use two lanes (7-8) that will handle general and bulk cargo. The authorization will respond to the demands and infrastructure needs of the State of Israel, assist in reducing congestion at the ports and reduce the waiting time for unloading the cargo. Lanes 7-8 were approved for operation for general and bulk cargo, with a maximum unloading volume of up to 750,000 tons for each type of cargo per calendar year. Unloading restrictions can be removed in case of more than 30 waiting ships. The approval was given until the end of 2031.

The South Port was given permission to use lane 28 that will respond to general and bulk cargo, the permission will assist in reducing congestion at the ports and reduce the waiting time for unloading the cargo. Lane 28 was approved for operation for general and bulk cargoes, with a maximum unloading volume of up to 750,000 tons for each type of cargo per calendar year. Unloading restrictions can be removed in case of more than 30 waiting ships. The validity of the approval until the end of 2031.

Ashdod Port was given permission to use an area of 40 dunams in the area of lane 25 for 6 years.