Israel Shipyards Industries, one of the largest shipbuilding and repair facilities in the eastern Mediterranean has reportedly submitted a joint bid with Dubai’s DP World in a tender to privatize Israel’s Haifa Port.
The two signed an agreement for exclusive cooperation in the privatization of the port which is one of the two largest sea terminals of Israel on its Mediterranean coast.
According to the Israel shipyards industries, the cooperation will help to improve the competition in ports, lower costs and set up advanced international trade and logistics infrastructure, adding that Haifa will be a key hub in the Middle East.
Dubai State-owned DP World, which operates ports from Hong Kong to Buenos Aires had recently signed several agreements with Israel’s Dover Tower, including a joint bid to privatize the Haifa port.
At the time, Shlomi Fogel, co-owner of Dower Tower, an Israeli businessman who owns a stake in Israeli shipyards informed that DP World would partner in the privatization of the Haifa Port with Israel Shipyards.
Israel is selling government-owned ports and constructing new private docks to foster competition and reduce costs.
Haifa Port will need to be upgraded to compete with a new one being built by China’s Shanghai International Port Group.
According to the report, as part of DP World’s memorandum of understanding (MoU) with Dover Tower;
- The construction of Israeli ports and free zones and the potential establishment of a direct shipping route between Eilat and Jebel Ali in Dubai will be evaluated by DP World.
- Dubai Customs will encourage and facilitate trade between private entities in both countries.
- Along with the Israel Shipyards, Dubai’s Drydocks World will pursue business opportunities in a joint venture for the development, production and marketing of ISL goods.