Israel set to open massive new Haifa port September 1

Israel’s new Gulf Port of Haifa is set to begin operations on September 1, creating new competition among Israel’s ports.

One of the largest infrastructure projects in Israel, the new port was built over 15 years with a NIS 5 billion government investment. The port is built entirely offshore, with docks 800 meters long extending 17.3 meters below sea level and connecting to the Haifa coast.

“The opening of the Gulf port will revolutionize the entire economy. It is the newest port in the world, with the latest in port technology,” said Yitzhak Blumenthal, CEO of the Israel Ports Company. “This will have a dramatic impact on everyone, from manufacturers to the Israeli consumer. This will reduce the cost of living, because almost all products, including the raw materials used by Israeli industry, come through the gates of seaports.”

The new port is located near the existing Haifa port that has served Israel since before the state’s founding and is currently Israel’s largest port. It is being built by Israeli companies Shapir Engineering and Ashtrom, and will be operated by China’s Shanghai International Port Group, one of the world’s largest shipping managers, for a period of 25 years.

The new Gulf Port will be the most advanced in Israel, and the only one able to quickly unload large ships 400 meters long and 62 meters wide that carry 18,000 containers or more.

Another new port, being built in Ashdod, is also expected to be completed later this year, as part of a port reform that was enacted in 2005.

More than 99% of Israeli trade is done through the country’s seaports, Israel Ports Company said. The opening of the new ports will enable competition, lower consumer prices, and revolutionize the entire economy, it added.

The new ports place Israel first among the top tier of countries in the eastern basin of the Mediterranean and in the world, the company said. Israel’s existing ports in Haifa, Ashdod, and Eilat are also undergoing renovations in efforts to modernize an important component of Israel’s economy.

The opening comes at a time when seaports around the world are struggling with congestion. A report this week from Swiss shipping company Kuehne + Nagel said 116 ports around the world are backed up, with some 328 ships waiting to dock and unload. The delays, blamed largely on supply chain backlogs that have grown out of control during the pandemic, lead to longer delivery times and higher prices. This congestion will continue to plague economies worldwide until at least the middle of 2022, the report said.

Israel’s ports have also been severely backed up. In addition to the global factors and delays related to the renovation projects, a work dispute between the Histadrut labor union and the ports is preventing the docks from hiring enough workers to handle the workload.

The new port will also be an important growth engine for the northern area of the country and for Haifa in particular. The port’s activities will provide employment for thousands of people and add about NIS 1.5b. to the local economies, the Israel Ports Company said.