BMI View: The Israeli ports sector is undergoing a state of flux, with the major ports set to be expanded with new, privately operated, terminals, which will be able to handle the larger vessels that are becoming the norm on the key Asia-Europe trade route on which Israel stands. However, the se developments face strong opposition from current port workers and unions , which is impacting throughput .
Headline Industry Data
2014 Port of Haifa total tonnage throughput to contract by 7.0%, and to average growth of 1.5% to 2018.
2014 box handling at Haifa will contract by 18.0% to 1.11mn twenty-foot equivalent units (TEUs). Growth projected to return in 2015 and average 3.2% to from 2015 to 2018.
Israel's total trade is forecast to see real growth of 2.5% in 2014, from a 2.0% expansion in imports and a 3.0% growth in exports. Growth will average 3.4% over the medium term.
Key Industry Trends
CHEC Wins Contract For Port Construction Project: China Harbour Engineering Company (CHEC) has won the initial tender for the construction of one of the two new ports in Israel, according to industry sources. The project was initially estimated to entail a total investment of USD1.17bn and to be completed in eight years.
Zim Completes Debt Restructuring Process: Zim Integrated Shipping Services concluded its comprehensive debt restructuring process on July 16, according to a company press release. Under the plan backed by the company's lending banks, shipowners and bondholders, about USD1.4bn of the company's debt and liabilities worth USD3.4bn was converted into a 68% ownership stake.
Zim Releases Q114 Financial Results: Zim Integrated Shipping Services posted EBITDA of USD29mn in Q114, according to a company press release. The company's operating cash flow stood at USD23mn in the reported period. The company has finalised the terms of financial contracts for a restructuring plan valued at more than USD3bn, which will include a USD1.4bn debt-equity swap with...