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, these developments face strong opposition from current port workers and unions. In terms of demand, moderate growth at Israel's container-handling facilities should be supported by steady, though unspectacular, economic growth.
Headline Industry Data
2014 Port of Haifa total tonnage throughput to grow by 7.2%, and to average 6.1% to 2018.
2014 box handling at Haifa will contract by 0.1% to 1.36mn twenty-foot equivalent units (TEUs). Growth projected to return in 2015 and average 2.7% to 2018.
Israel's total trade is forecast to see real growth of 3.2% in 2014, from a 3.0% expansion in imports and a 3.3% growth in exports. Growth will average 3.7% over the medium term.
Key Industry Trends
Firms Seek Prequalification For Port Tenders : Four international terminal operating firms applied for prequalification for tenders to develop two ports at Haifa Bay and South Ashdod, Israel. The four firms are Eurogate, Terminal Investment, International Container Terminal Services and Shanghai International Port Group (SIPG). The concession involves planning, financing and construction of the ports, along with out-fitting the terminals for handling operations. The two ports will be built simultaneously.
Zim Records US D 530mn Loss In 2013: Israel's Zim Integrated Shipping Services (Zim) registered a net loss of USD530mn in 2013, compared with a loss of USD428mn in the year-ago period. The net loss was driven by a one-off order cancellation payment of USD161mn for newbuild vessels.
Ashdod Port Posts 31.6% Rise In Net Profit : Israel-based Ashdod Port Company registered a 31.6% year-on-year (y-o-y) rise in net profit to ILS176mn (USD50.45mn) in 2013. The company's revenue...