First Privatization of an International Port in Israel – the Port of Eilat
Papo Maritime Ltd paid the State NIS 105 million for the right to manage and operate the port for the next 15 years, with the total proceeds in this period expected to be approximately NIS 120 million. For exercising the option to operate the port for an additional 10 years, the company will pay NIS 105 million, provided it meets the targets that were set by the State in the tender.
The privatization of the Port of Eilat is part of a process that began in 2005 during the Binyamin Netanyahu’s term in office as minister of finance – when the port reform in Israel began, paving the way for the current privatization. This step is of great importance, since the move will increase competition in Israel’s port sector, and will help increase the volume of trade with countries in the Far East, in advance of the formulation of the joint trade agreement between Israel and India.
Minister of Finance Dr. Yuval Steinitz welcomed the signing and said: “I am proud to complete the privatization of the Port of Eilat, the smallest of Israel’s international ports. I sincerely hope that this will be a starting point for similar privatization of the ports of Ashdod and Haifa. Under the agreement, the Port of Eilat will also become a shipping container port, and this will aid in the development of economic ties with China, India and other Asian countries, and will aid in the development of the economy in general and the development of the city of Eilat in particular. I congratulate the winners on their success and hope they will continue to develop the port, thereby enhancing its contribution to the Israeli economy.”
Papo Maritime Ltd co-owner Rafi Nakash: “This is a significant step for the benefit of the city of Eilat and the State of Israel. We believe in the growth potential of the Port of Eilat and will do all in our power to ensure that it prospers.”
Source: Israel Ministry of Finance
