Israel inaugurates Chinese-run Haifa port terminal, in likely boost for economy

Israel on Wednesday officially inaugurated a new port terminal in Haifa Bay, the first of two recently built private port terminals that are expected to fuel competition, decrease import costs, and present a boon for the Israeli economy. Almost all of Israel’s international trade is handled via maritime routes and the Haifa port is the busiest shipping hub in the country, managing approximately half of all freight.

China’s state-owned Shanghai International Port Group (SIPG) won the tender in 2015 to operate the commercial shipping facility for 25 years, an arrangement that stoked controversy in Israel and abroad. The project’s proximity to Israel’s submarines, among other issues, raised security concerns, especially after reports revealed that neither the cabinet nor the National Security Council had any input on the deal. The project also raised the ire of the US, which sometimes docks military vessels in Haifa.