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Writer's pictureRaymond STERN

Israel opens China-operated port, seeks ties to ‘neighbours in the Middle East’

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


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


The country is selling its state-owned ports and building new private docks in an effort to bring down costs and cut above-average wait 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 neighbouring Arab countries are also creating new trade opportunities for Israel and Haifa is well placed to become a regional hub.


“I’m sure we can leverage this opportunity not just for local prosperity, but for realising opportunities and making a real contribution to our neighbours in the Middle East,” Transport Minister Merav Michaeli said after the port was inaugurated in a low-key ceremony on Wednesday.


Another new port on the Mediterranean coast is due 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 friction between Israel and the United States during the last years of the Donald Trump administration.


According to US website Axios, CIA director William Burns also expressed concern about Chinese involvement in Israeli major infrastructure projects especially the tech sector, when he met Israeli Premier Naftali Bennett last month. But the Israeli defended their China policy.


“In recent months, we started a dialogue with the Biden administration on China. The US asked about specific projects like the Chinese involvement in the Tel Aviv metro,” a senior Israeli official told Axios.


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.”




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