Haifa Port Freight Train Service Halted for 6 Weeks Amid Repair Dispute

Freight train services to and from Haifa Port have been suspended for approximately six weeks since August 24 due to a track defect and a dispute over responsibility for its repair. The halt has forced a shift of cargo to trucks, doubling container transport costs and increasing road congestion.

The core of the disagreement lies between the port authority and Israel Railways over who is responsible for maintaining the track and funding the repairs. The port authority asserts a 2015 agreement places the responsibility for track inspection, maintenance, and financing on Israel Railways. Conversely, Israel Railways claims the track is within a private port area, making its maintenance the port authority's duty. The railway company has stated it offered assistance with repairs and contractor engagement.

The estimated cost to fix the defect is around 2.8 million shekels. Repairs are expected to take three to four weeks once initiated, though no clear start date has been set. The disruption is evident in container transport costs: a single freight train can carry about 100 containers, a load requiring approximately 75 trucks. Transporting 100 containers by train costs about 700 shekels per container, while by truck it rises to nearly 1500 shekels per container, meaning the same volume costs roughly 70,000 shekels by train versus 150,000 shekels by truck.

Beyond increased costs, the reliance on trucks is straining roads and delaying cargo delivery and clearance from the port. These increased transport expenses may gradually be passed on to parts of the supply chain and affect some commodity prices. Haifa Port has requested immediate repair work and explored the possibility of partial line operation as a temporary solution. The Ministry of Transport stated it is working towards a resolution to resume freight train services as soon as possible, while adhering to safety requirements.