Sources inform ''Globes'' that Israel Shipyards Ltd. is expected to begin operations as a private commercial port. The company is negotiating with Israel Ports Company - Development and Properties Ltd., which administers Israel’s ports, for a port operating license. This would be Israel’s first private port, alongside the government-owned Haifa Port Company Ltd., Ashdod Port. Company Ltd., and Eilat Port Company Ltd.
Israel Ports Company has sent a draft operating contract to Israel Shipyards, setting out the terms for operating a port. A fundamental condition in the contract requires Israel Shipyards to invest $60 million in its port, mainly for cranes for the rapid lading and unlading of containers.
Israel Shipyards will also have to pay the same user fees paid the government-owned ports. For example, Israel Ports Company charges a wharf fee of 0.2% of the value of a cargo. The port companies pay Israel Ports Company a fixed fee of 4% of turnover, and variable costs depending on activity. These charges total approximately NIS 400 million a year.
Israel Ports Company CEO Amos Ron confirmed the report, saying that the operation of Israel’s first privately owned port was an important step towards the entry of more private operators.
The operation of the privately owned Israel Shipyards’ port is the main achievement of the ports reform.
Published by Globes [online], Israel business news - www.globes.co.il - on November 8, 2005