Shanghai International Port Group has been awarded a contract by the Israel Ports Company to construct a new private port in that city. SIPG was the only company to bid for the project.
The new port is expected to open for business in 2021.
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There was much controversy in Israel during Prime Minister Binyamin Netanyahu’s last government when he promoted his plan to increase competition in Israel’s ports. Netanyahu argued that Israel’s current ports in cities like Haifa and Ashdod are not large enough to handle all of the demand for the unloading and loading of cargo on any given day.
This he said has led to higher port fees which in turn are passed on to the consumer in Israel where prices tend to be higher than in other countries. The Prime Minister also wants to privatize all of Israel’s ports.
SPIG, which operates the port in Shanghai which is the world’s largest harbor for cargo ships, will have a 25 year contract to operate the new port.
This news also marks yet another example of the strengthening economic ties between the world’s largest country and the Jewish State.
Israel’s Transportation Minister Israel Katz said, “The Chinese group that won the tender will bring competition to the sector. It’s winning is an expression of confidence in the State of Israel by a superpower, which has decided to invest billions of shekels in Israel and turn it into an international cargo center for all the world.”
