30 November 2012

[301112.EN.SEA] Zim Urges Jerusalem To Split Firm Into Foreign And Domestic Entities


ISRAELI flag carrier Zim is urging the government to accelerate the implementation of a decision to split up the shipping line into two independent domestic and foreign companies.

"Delay may affect the company's competitiveness and complicate the creation of joint ventures common among industry players [and have the] potential to improve cost structures, cost reduction, and improve optimisation," said the Zim statement accompanying quarterly results.

Zim has sought to split the company for several years, but the government holds a golden share - veto power - and trade unions are also against the move, reports London's Containerisation International.

Despite the best quarterly results in two years, Zim said it may need further assistance from owner Israel Co. "Zim recognises that there is still uncertainty and potential volatility in market conditions," the Haifa-based company said in a statement.

"Therefore, should the need arise, it will approach its financing partners, who have been supportive in the past, to achieve certain concessions or additional flexibility to help the company overcome any difficult period," the company said.

Source : HKSG.

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