Shippers plead to save Zim in national interest

THE survival of Zim shipping line, controlled by Israel Corp investment company, is a matter of "national interest, Israeli Shippers' Council chairman Gad Schaeffer was quoted as saying on the Port2Port.com, Israeli trade news website.

"The current distress of Zim, following its privatisation, cannot be considered as a problem of its private owners," said Mr Schaeffer.

"That narrow view fails to consider Israel's national interest. The damage from the loss of this anchor of marine shipping will be far greater than any aid injected into Zim," he said. "Reliable services from carriers to the country's ports, could not be counted on without a viable Israel-based carrier."

Zim, the world's 17th largest carrier is expected to suffer a US$1 billion loss up to 2013 according to Israel Corp. Through restructuring, the parent expects to deliver an operating profit of $100 million by 2011. A recent positive development for the carrier was its success in getting Korea's Hyundai Samho shipyard to delay the delivery of four 10,000-TEU ships to 2014 and 2015.

Source: Transport Weekly