Israeli Transport Minister Opposes Zim Shipping Deal
Translated & summarized from Globes by baba
Transportation Minister Miri Regev opposes the proposed sale of Zim shipping company shares, citing concerns over foreign dependency and national interests. The deal, which would split Zim into global and Israeli arms, requires state approval due to its "golden share." Regev's objection, submitted shortly before elections, aims to reset the approval process. Both the Finance Ministry and the Transportation Minister have now voiced opposition.
The story in 5 lines · by baba
- Transportation Minister Miri Regev opposes the proposed sale of Zim shipping company shares.
- Regev cited concerns that the deal would leave Zim dependent on foreign shipping giant ZIM.
- The state's "golden share" requires approval from both the Transportation and Finance Ministers.
- The Finance Ministry also previously objected to the proposed sale of Zim shares.
- Regev's objection may aim to reset the deal's approval timeline before the upcoming elections.
Transportation Minister Miri Regev has announced her opposition to the proposed sale of shares in the Zim shipping company. In her opinion, Regev stated that while the company intends to submit a revised offer after its initial proposal faced objections from the Shipping and Ports Authority, the Ministry of Finance, and the Prime Minister's Office, Zim has not withdrawn its original request. To prevent the original request from being revived and to avoid misinterpretations, Regev sent her opinion to the Head of the National Security Council, Shmuel Ben Ezra, the Minister in charge of Government Companies, Dudi Amsalem, and the Director of the Companies Authority, Roee Kahlon, detailing her objections.
Regev expressed concern that although the new entity is intended to be Israeli-owned, a significant portion of its operational capabilities and power centers would remain dependent on foreign shipping company ZIM Integrated Shipping Services Ltd. (ZIM). She noted that ZIM operates under EU regulations and laws, and its decisions are based on its own business interests, which may not always align with Israel's national interests. Regev also voiced concerns about the long-term viability of "Zim Israel" as an independent shipping company.
While acknowledging positive proposals from Zim, such as continuing to employ Israeli sailors, supporting maritime training, maintaining an Israeli headquarters, and providing financial support during initial operational years, Regev argued that these measures primarily preserve existing capabilities. She stated that no enforcement mechanisms or incentives were presented to guarantee their long-term continuation under changing business conditions.
Regev concluded that the proposed deal does not adequately fulfill the purpose of the state's special "golden share" in Zim. She believes approving the deal could weaken Israel's ability to maintain independent and effective national shipping capabilities over time, thus opposing its approval. The state's approval is required because it holds the "golden share" through the Transportation and Finance Ministers, both of whom have now expressed opposition. Regev's objection, coming shortly before elections, is seen as an attempt to reset the timeline for the deal's approval, forcing the company to submit a new application for reconsideration, potentially by a different government composition after the elections.