Bidding for Eilat port postponed

Tel Aviv — Israel’s Finance Ministry has postponed for a month the bidding process for operating the Eilat port. The move was designed to give potential bidders more time after Israel Chemicals Ltd. (ICL) was the sole bidder in the process, which closed on July 5. The Finance Ministry came under intense criticism when it became apparent that ICL was the sole bidder. Labor party leader Shelly Yachimovitch charged that the Ofer family (which holds a majority stake in ICL) was in conflict of interest because of interests in Zim Shipping and a private dock owned by ICL at the Eilat port. The ICL bid is also viewed as problematic and will need regulatory approval if accepted. Israel’s Anti Trust Commission is likely to intervene, and either set conditions for ICL ownership of the southern port or disqualify the company altogether. The company was the only one to post the necessary guarantees. Three other bidders – Goldbond Group, Gadot Tankers and Terminals, and Papo Maritime – all informed the Government Corporations Authority that they were dropping out of the process. ICL has rejected criticism of its bid, saying it is the largest employer in southern Israel and intended to invest $125 million in upgrading the port at Eilat. The company termed the attempts to eliminate it from bidding “empty populism.” Eilat is Israel’s third largest port, and has been handling an increasing share of the burgeoning trade with the Far East. ICL ships some 2.5 million tons of potash and other chemicals via the Eilat port, and the importance of the port has continued to grow in recent years as sales to the Far East increase in importance. ICL accounts for nearly 20 percent of the port’s revenues. Shipments via Eilat are expected to continue to increase in the coming years. In addition, the government is planning a rail line to Eilat that would include a feeder line from Sdom at the Dead Sea specifically for shipping potash.