Port of Eilat privatisation

Following unanimous approval by an inter-ministerial commission of a proposal put forward by the Ministries of Transportation and Finance, the Port of Eilat, Israel's third largest port, is to be privatised as the first step in the Government’s long term plan to privatise Israel's maritime ports.

The committee, chaired by Finance Minister Yuval Steinitz, endorsed the sale of government shares to private investors from Israel or overseas. The move will see the full privatisation of the port and privatisation of 15 percent of the ports of Haifa and Ashdod.

Located at the northern tip of the Gulf of Aqaba and with significant economic and strategic importance, the Port of Eilat is the only Israeli port on the Red Sea. Privatisation is intended to improve the port's operations and logistics through a private party experienced in port operations.

The approval follows the Israeli Cabinet decision in 2005 to reform the country’s ports, which includes selling the operating rights for 15 years, with an option to extend by an additional 10 years.

Handling six percent of Israel's marine cargo, Eilat’s main cargo last year was the import of 120,000 motor vehicles from the Far East, which accounted for 60% of the port's activity. It also handled over 2m tonnes of potash and phosphates.
(Source:www.container-mag.com)