Eilat port due to close after failure to pay city taxes
Israel's southern harbour has suffered significantly from the surge in Houthi attacks on Red Sea shipping: the Israeli government is organising a meeting to look for a solution
The port of Eilat is due to close in a few days after failing to pay municipal taxes, with trade to Israel’s red sea harbour having slumped in the wake of 7 October and the Houthis’ subsequent attacks on international shipping.
As reported by Israel’s financial newspaper, Globes, a letter from the country’s national emergency authority said that “following the shutdown of Eilat Port for ongoing operations and the economic situation it has found itself in as a result of the continuing crisis, the Eilat Municipality has notified the port management of the seizure of all of the port’s bank accounts due to financial debts to the municipality. Due to this, a notice has been received from the Shipping and Ports Authority that Eilat Port is expected to close and cease all activity starting this coming Sunday.”
Israel’s Ministry of Transport told the Israeli media publication that it was calling an emergency meeting, bringing together representatives from the port itself, the city of Eilat, and other government departments.
Prior to 7 October, the port was primarily used for the import of cars into the country, and the export of Dead Sea minerals, particularly Potash, to the Far East.
In the early 2000s, Benjamin Netanyahu, then serving as Finance Minister, began efforts to privatise the port. Ultimately, the post was purchased in 2012 by the Nakash brothers, who paid the Israeli government 120 million shekel for a 15 year lease.
The attacks by the Houthis in Yemen on Red Sea shipping have had a severe effect on Red Sea shipping as a whole, including on Eilat. Last August, the CEO of the company which runs the port warned that it was “in a state of bankruptcy”.
Moshe Azulay, chair of the Histadrut trade union’s Eilat branch told Ynet that “Bulk carrier ships occasionally arrive, about once every two or three months. The ship is unloaded and then it leaves. The port is effectively closed. Importers don’t want to pay high costs. They can go through the Suez Canal — it’s an economic issue.” He described how there had been significant layoffs at the port, though the city itself was thriving due to the tourist industry.
“”The city operates 24/7 and hotel occupancy is at its peak. The city is bustling but the port is desolate,” he said. “It’s disheartening to see the port inactive when it used to be a strategic employment hub.”
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