Ashdod Shippers gained NIS 100m from port reforms

Ashdod port clients gathering at the Tel Aviv Exhibition Grounds, held last Tuesday, were told that Shipping companies and other clients using the Ashdod port had saved a total of between NIS 80m to NIS 100m, since Israel's port system was reformed in February.
 
The claim was made by chairwoman Iris Stark at the first port clients gathering held by the port.
 
In her address Stark noted: "for those who want to argue with the success of the reform, let him deal with the results. We have proven, working together with the port workers, that it is possible to make the work more efficient and achieve a significant monetary savings for the port users".
 
Stark attributed that the unprecedented savings was due to a significant reduction in the time ships had waited for port handling, as well as the decision made by EMTA (Europe Mediterranean Trade Agreement) conference to cut the 7% congestion surcharge in half, to 3.5%, effective November 1.
 
She noted that the 50% reduction in the congestion surcharge will save port clients annually NIS 50m.
 
Stark emphasized that the improvements in ship's turnaround time, since the port reform took place, led major global shipping companies such as China Shipping and Cosco to include Ashdod port on their list of select ports, stretching from China to North America. Stark also touched the issue of port tariff and said that in order to bring down costs further, she would submit a proposal for reforming the ports' tariff systems. The proposal will be submitted for the approval of the Finance and Transportation Ministers in February 2006.
 
Mr. Shuki Sagis, Ashdod Port Company CEO said that the port had adopted a policy to take all necessary steps in order to eliminate the EMTA congestion surcharge. Sagis said that the elimination of the congestion surcharge was necessary in light of the improvement in the port service level, reduction of ship's and truck's waiting times and compliance with output targets at the port. According to Sagis, ship's average waiting time had so far been reduced by more than 45%, from 15.3 hours before the port reform.
 
Sagis estimated that ship's waiting time would likely be cut to 6 hours by the end of 2005.he also estimated that in 2005 the port will handle TEU 600,000 and in 2006 some TEU 700,000 will be handled. Sagis added that the Ashdod Port Company was investing huge amount of money to deepen the port's basin.
 
The NIS 35m. deepening project will enable, in the first stage, 5,000 TEU container ships to dock safely. The basin will first be dug to a depth of 14 m. by March 2006 and by September 2006 the basin will be 15.5 m. deep, allowing 7,000 TEU ships to load and unload their containers at the new Eitan container port facility.