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Haifa emerges as a promising alternative to the Suez canal

Haifa emerges as a promising alternative to the Suez canal

Haifa Port, Israel’s second-largest port, has become a significant player in the world of international trade following its acquisition by a consortium led by India’s Adani Group. This strategic move is reshaping the port into a world-class facility that could potentially offer an alternative route for goods traveling between India and Europe, challenging China’s increasing influence in the region.

Ron Malka, the former Israeli envoy to India and current executive chairman of the Haifa Port Company, envisions Haifa Port as a vital link connecting the East to Europe and the United States. By leveraging the port’s strategic location, India and Israel aim to strengthen trade connections between Israel, neighboring Arab nations, and other countries. This effort could even expand the Abraham Accords to include Saudi Arabia, opening up new economic opportunities.

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Q: How do you view India’s strategic purchase of Haifa Port?

A: Haifa Port is already considered a leading port in Israel, known for its innovation, growth potential, and diverse range of activities. Our vision is to elevate Haifa Port to world-class status and establish it as a pivotal player in the Mediterranean. We aim to create a genuine gateway connecting the East to Europe and the United States, enhancing trade opportunities in both directions.

This decision to invest in Haifa Port is not only a strategic business move but is also supported by the strong bilateral ties between India and Israel. Through our joint efforts, we plan to enhance the port’s infrastructure, operational efficiency, and global competitiveness. Ultimately, our goal is to contribute to the economic development of both nations while positioning Haifa Port as a premier maritime hub in the region.

Q: How can Haifa Port improve regional economic relations?

A: Traditionally, goods traveling between India and Europe have heavily relied on routes passing through the Suez Canal. Haifa Port can potentially offer an alternative gateway, diversifying options and reducing dependence on single routes. By upgrading the port’s infrastructure, we can attract more businesses, stimulate economic growth, and create job opportunities, thus benefiting the local economy.

Adani’s expertise in port management and operations can bring advanced technologies and best practices to Haifa Port, enhancing its overall efficiency, productivity, and competitiveness. This knowledge sharing can boost the regional economy, promote economic integration, and facilitate smoother trade flows between Israel and neighboring countries. It may also encourage joint ventures, investments, and the exchange of goods and services, fostering increased bilateral trade and economic cooperation.

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Q: What are the short-term and long-term goals for improving regional connectivity, infrastructure, and trade in West Asia?

A: In the short term, we are focusing on forging strong partnerships in the shipping industry and anticipate a significant increase in cargo movement through Haifa Port. Collaboratively, India and Israel aim to strengthen ties with neighboring countries, enhancing regional connectivity and trade. We aspire to develop a more modern and advanced facility capable of handling larger cargo volumes.

In the long term, our vision includes establishing railway connections between Haifa and West Asia through the United Arab Emirates. This ambitious project aims to enhance regional connectivity, facilitating seamless transportation of goods and fostering economic integration. The involvement of international governments, including the US, India, and the UAE, as well as organizations like the World Bank, underscores the seriousness and potential of these projects.

Q: How does reviving old ports like Haifa differ from building new private port terminals, as seen in China’s projects?

A: Reviving an existing port like Haifa and building new private port terminals are distinct endeavors. Haifa Port comes with its inherent advantages and challenges. We cannot completely redesign it according to our preferences, but we can immediately work to enhance and address any shortcomings we identify. It’s akin to renovating an iconic existing building with fresh ideas rather than starting from scratch.

Moreover, we benefit from the invaluable knowledge and expertise of Haifa Port workers, which, when combined with Adani and Gadot’s expertise, creates a synergy that sets us apart from Chinese projects or new ports like Ashdod.

Q: What freight links can we expect from Haifa to Arab states in the coming years?

A: Following the declaration of the Abraham Accords, which signified the normalization of relations, the first ship carrying goods from the UAE arrived at Haifa Port. This marked the beginning of a flourishing trade relationship, with ships from the UAE making regular calls at Haifa. Our business connections with Palestinian and Jordanian importers and exporters have also been fruitful, as they frequently utilize Haifa Port.

However, it’s evident that we have just scratched the surface of the potential in this area. Haifa remains an ideal gateway for trade with countries to the east. Expanding the scope of the Abraham Accords to include Saudi Arabia could unlock new opportunities and horizons for us. We aspire to establish connections with countries north of Israel, solidifying our role as a bridge between the East and the West, capitalizing on the intersection of geopolitics and global trade.

Q: How does port privatization benefit the supply chain?

A: Historically, Mediterranean ports in Israel were dominated by two government-owned port operators, limiting competition. However, the landscape has changed, with five different operators now in play, four of which are private entities, including international giants like Adani and Terminal Investment Limited (owned by Mediterranean Shipping Company). This increased competition will drive more aggressive competition and lead to improved services.

As the saying goes, time is money, and better service equates to enhanced efficiency and cost-effectiveness. Embracing these changes and fostering healthy competition will likely lead to the continued evolution of the Israeli port sector, benefiting businesses and consumers alike by reducing costs and enhancing supply chain efficiency.

Q: What projects are planned to transform the area around Haifa Port for maximum benefit?

A: Haifa Port was originally built by the British Mandate exactly 90 years ago as a strategic hub for receiving oil transported through pipelines from western Iraq. It served as a loading point for bunker ships, facilitating the distribution of oil across the Mediterranean. However, its location adjacent to the city created a physical barrier, blocking public access to the waterfront. We are now embarking on a plan to reclaim this waterfront for commercial and leisure activities.

Plans are underway to establish the city’s first modern international cruise terminal, catering to the increasing number of cruise ships choosing Haifa as their home port. These state-of-the-art facilities will undoubtedly enhance Haifa’s appeal as a premier tourist and business destination.

Q: What does the future hold for port cities like Haifa?

A: The transformation of Haifa is part of a global trend seen in port cities worldwide. The renovation of warehouses and the creation of public spaces, such as opera houses, hotels, museums, and bustling cafes, have successfully revitalized these regions.

Revitalizing Haifa’s waterfront poses unique challenges, with the railway dividing the city from the piers, necessitating significant infrastructure improvements. However, we remain optimistic about the forthcoming transformation of Haifa’s skyline and the positive impact it will have on the city’s future.


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