Shapir, Orian win IDF supply center tender

IDF Supply Center  / Imagin: Shapir

The consortium will plan, construct, and operate the new supply center for 26 years.

The Ministry of Defense administration for moving Israel Defense Forces bases to the south has selected a consortium of Shapir Engineering and Industry (TASE: SPEN) and Orian SH.M. (TASE: ORIN) to build the planned IDF supply center. The franchise contract will be signed in the coming months, and the consortium will then have one year in order to financially close the project and four more years to build it. The consortium's winning bid was NIS 5 billion. The share prices of Shapir and Orian rose 9% and 35% today on the news, respectively.

The Ministry of Defense explained that according to the future plan, all IDF logistics centers would be combined in three centers in northern, central, and southern Israel under one unified command. The three centers will be operated in existing camps, starting in 2024-2026.

The Ministry of Defense's announcement stated, "The logistics centers to be constructed will have over 250,000 square meters of built-up space in high-rises in order to reduce the land used and avoid increasing the space of the camps. The IDF's convergence into three logistics camps will free up 1,800 dunam (450 acres), much of it in high-demand areas. This will enable the state to build tens of thousands of homes, open and public spaces, and other uses for the public's benefit.

"The new logistic centers operating concept is based on advanced inventory control technologies in combination with various automation systems. The new design will make it possible to provide an interdepartmental response, and to improve services to units. A wide variety of equipment will be stored in each of the centers, which will facilitate regular IDF operations."

Ministry of Defense Southern Relocation Administration head Brigadier General (reserves) Yitzhak Cohen said, "This is an especially important day for someone who served as head of the IDF logistics division for many years. Today, the division is being connected to the technological era in construction of smart, innovative, and efficient infrastructure that will move the IDF ahead by many years. The Southern Relocation Administration is pushing ahead with huge national projects, including vacating IDF camps from high-demand areas, to be replaced by newly constructed housing units."

Five consortia competed in the tender: Shikun & Binui, Maman Cargo Terminals & Handling, and Allied Holdings; Ashtrom, Afcon Holdings, and Flying Cargo; Shapir-Orian; Minrav, Electra, and Leidos; and Israel Land Development and Seldat.

Former IDF chief logistics officer Brig. Gen. (res.) Ron Iluz coordinated the tender for the Shapir-Orian consortium. He said, "This is a nationally important project located on the army's operational artery. It will significantly improve the IDF's supply chain through its technological innovation. We at Shapir, which triumphed in the tender, together with Orian, are glad to continue our momentum of achievement in managing and constructing national mega-projects, such as Road 6, the Jerusalem light rail, and Haifa Port."

Adv. David Schapiro, Adv. Micha Tollman, and Adv. Nitzan Kahana from the Yigal Arnon & Co. law firm represented Shapir in the deal.

Published by Globes, Israel business news - en.globes.co.il - on January 22, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

IDF Supply Center  / Imagin: Shapir
IDF Supply Center / Imagin: Shapir
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