Israel Opens Chinese-operated Port, US Concerns

In Economics, Main
September 13, 2021
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2 minutes read According to US website Axios, last month CIA director William Burns expressed concern about Chinese participation in major Israeli infrastructure projects during his meeting with Bennett. Israel has opened a new shipping port along its Mediterranean coast to serve its ambitions for wider trade ties with the Arab world, in spite of

2 minutes read

According to US website Axios, last month CIA director William Burns expressed concern about Chinese participation in major Israeli infrastructure projects during his meeting with Bennett.

Israel has opened a new shipping port along its Mediterranean coast to serve its ambitions for wider trade ties with the Arab world, in spite of US concerns about Chinese participation in Israeli infrastructure projects.

Haifa Port

The 5.5-billion-shekel ($1.7 billion) Bay Port at Haifa, which will be operated by Shanghai International Port Group (SIPG), will enable bigger classes of cargo ships, carrying 18,000 containers or more, to anchor in Israel.

The country is selling its own ports and building new private piers in a trial to save costs and cut above-average of waiting times for vessels to unload. About 99% of all goods move in and out of Israel over sea and an upgrade is needed to maintain economic growth.

Warming ties with neighboring Arab countries are also creating new trade chances for Israel and Haifa is well placed to become a regional hub.

On Wednesday, after the port inauguration in a low-key ceremony, Transport Minister Merav Michaeli said “I’m sure we can make full use of this opportunity not just for local prosperity, but also for providing opportunities and making a real contribution to our neighbours in the Middle East.” .

Another new port on the Mediterranean coast is scheduled to open in Ashdod by the end of the year, to be operated Swiss-based Terminal Investment Limited.

The issue of China’s role in the Haifa port was a point of dispute between Israel and the United States during the last years of the Donald Trump governance.

A senior Israeli official told Axios that in recent months, they started a dialogue with the Biden governance about China. The US asked about specific projects like the Chinese participation in the Tel Aviv metro.

The official added: “We told the Americans we welcome US infrastructure companies to work on big projects in Israel, but they haven’t been applying for the tenders.”