[080713.EN.SEA] Israel Seeks Private Terminals To Break Public Sector 'Strangle-Hold'

THE Israeli government, saying labour federation Histadrut has "strangle-hold on us", will ask for tenders to build two private terminals to "bring down prices on consumer goods".

The new terminals in Haifa and Ashdod, to cost US$1.1 billion each with $190 million on infrastructure, are an attempt to break the power of public sector monopolies and the unions that dominate ports, said Prime Minister Binyamin Netanyahu.

Should there be no interest from overseas bidders and the feasibility of the two private port developments is in question, it will rescind one of the two tenders within 90 days of publication, reported American Shipper.

Following the state announcement, Haifa Port Co said its existing terminal is "ready for competition" and stressed its strong productivity record of 29.4 container moves per crane hour at its terminals, which was higher still at Carmel Terminal at 32 containers per crane hour compared to an average of 23.7 per hour in 2011.

"This productivity allowed Haifa Port to take back the lead in domestic containers after five years that Ashdod was the leader: In 2013 the market share is 52 per cent in Haifa and 48 per cent in Ashdod. For domestic and transshipment it is 61 per cent Haifa and 39 per cent Ashdod," said its chief executive officer Mendi Zaltzman.

The port operator boasts of its service to the major shipping lines, and in particular its transshipment of the MSC's Golden Gate Service and Zim's Mediterranean transshipment trade.

Source : HKSG, 08.07.13.