Ministry of finance plans to abolish Eilat port special status

Finance Ministry officials said last week that the Ministry was studying the possibility to abolish several tariff inducements given to cargo moving through the port of Eilat.
 
In a statement released last week, a spokesman for the Ministry noted that the tariff inducements had been granted by the government in order to foster trade via the port.
 
The inducements, valued at NIS 9 annually, were granted by the port in the form of "drawback" on land transportation to and from the port, lower stevedoring charges and lower dock charges.
 
The port director general, Gideon Gulver, argued against the decision saying that the port should be regarded as a national strategic assets, hence government should continue to do their utmost in order to keep cargo moving through the port.
 
He also said that by abolishing the inducements, the government would discriminate Eilat port vis-א-vis the two main Med. Ports Haifa and Ashdod.
 
Mr. Efraim Alter head of Zim Liner services division said that his company was studying the implication of the ministry's announcement. He added that Zim operated a liner service with three multipurpose ships: Mombasa Star, Durban Star III & Jorund, running between Eilat and East / South African ports.
 
Mr. Reuven Zuk, director general of Alaluff which represents NYK Line's RoRo service said that should the government decided to go ahead with the plan to abolish cargo inducement tariff, cargo owners would prefer to use alternative ports.