Haifa Port Freight Rail Service Halted Over Safety Dispute, Doubling Transport Costs

Freight transport by rail to and from Haifa Port has been suspended for over six weeks due to safety deficiencies discovered on the tracks on August 24. The shutdown is significantly disrupting importers, exporters, and shipping companies, forcing them to use trucks instead. This shift has doubled transport costs, added hundreds of trucks to already congested roads, and extended delivery and cargo clearance times.

Haifa Port CEO David Cohen has appealed to Avi Elmaliach, acting CEO of Israel Railways, highlighting the operational and commercial damages caused by the rail line's closure and questioning when service will resume. The core of the dispute centers on responsibility for track maintenance. A large gap between the rails caused the issue.

Israel Railways claims that since Haifa Port is privately owned, the responsibility and cost of repairs lie with the port, not the railway company. They argue the state should not fund repairs for a private port, which is jointly owned by India's Adani Group and Israel's Gadot. However, the port contends that a 2015 agreement between the port and Israel Railways assigned the railway company responsibility for the ongoing maintenance and funding of the expanded rail infrastructure within the port. The port also asserts that the identified defects pertain to the tracks and railway equipment, not the port's own infrastructure, thus placing the repair and funding burden on Israel Railways.

The port further criticizes the railway's handling of the issue, stating that the railway identified the problems but failed to act promptly on repairs or provide sufficient warnings to allow the port to prepare for a shutdown. Haifa Port is requesting detailed reports from Israel Railways regarding inspections, findings, and warnings issued in the 24 months preceding the shutdown, along with dates of defect identification and subsequent actions. Even if there are disagreements over the estimated NIS 2.8 million repair cost, the port argues that the railway should first fix the track to enable normal port operations before discussing funding.

The suspension is particularly impactful because the rail line extends directly into the port, facilitating cargo movement between quays and the national rail network. Without it, a single train carrying approximately 100 containers, which would cost about 70,000 shekels, now requires about 75 trucks costing nearly 150,000 shekels. This increased cost is expected to be passed on to consumers. The disruption affects not only transport expenses but also cargo clearance rates, operational density, and the port's ability to provide continuous service, especially for large-volume shipments. The Ministry of Transport stated it is working with the Port and Railway authorities to find a solution for resuming freight train traffic soon, prioritizing safety. Israel Railways reiterated its offer to assist the port with the repairs, emphasizing that train traffic will resume once safety requirements are met.