Shapir-Ashtrom group wins Haifa port tender

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 The consortium, which bid $266 million, overcame Shikun & Binui and Ludreco.

A consortium of Shapir Civil and Marine Engineering Ltd. and Ashtrom Properties Ltd. (TASE:ASPR) has won the tender for construction of the new port in Haifa Bay. The group bid $266 million, overcoming its competitor, the Shikun & Binui Holdings Ltd. (TASE: SKBN)-Ludreco consortium, which bid $1.2 million.

Besides the price, the tender also took in account factors such as experience, quality, and adherence to timetables. At the same time, the price was assigned a weight of over 80%, giving Shapir-Ashtrom a major advantage in the tender.

In June, PMEC, a subsidiary of Chinese government company China Harbour, won tenders to build two ports: one for $893 million (the southern port in Ashdod) and one for $893 million (in Haifa Bay). PMEC was allowed to choose which of the two it wanted to build, and chose the port in Ashdod. The Israeli Ports Company then turned to Shapir-Ashtrom, which finished in second place in the tender, and offered it the chance to build the Haifa Bay port on the same terms offered by the Chinese company.

Sources inform “Globes” that the consortium refused to match the terms offered by the Chinese winner of the tender. The Ports Company then asked the third place finisher, Shikun & Binui-Ludreco, to match the winning terms, but it also refused. Under the tender rules, the Ports Company had to negotiate simultaneously with both companies in a pricing process to determine which of them would offer the lowest bid. The two consortia submitted their bids last week.

Published by Globes [online], Israel business news – www.globes-online.com