Israel Missed Major Trade Opportunity Due to Jordan Border Delays
Translated & summarized from Maariv by baba
Israel's Bay Terminal in Haifa Port saw its activity cut by over half due to the war, with recovery still below pre-war levels. A significant missed economic opportunity involved an alternative trade route via Jordan, hampered by severe delays at the border crossing. This bottleneck prevented Haifa from capitalizing on increased demand for transit cargo due to regional shipping disruptions. The port aims to become a major regional trade hub, but realizing this potential hinges on improved border efficiency and regional stability.
The story in 6 lines · by baba
- Israel's Bay Terminal in Haifa lost over half its activity due to the war, with ongoing recovery below 2023 levels.
- Delays at the Jordan-Israel border crossing caused Israel to miss a major trade opportunity for transit cargo.
- Disruptions in the Strait of Hormuz created demand for an alternative trucking route through Jordan to Haifa.
- Waiting times of 14 to 20 days at the border crossing diverted cargo to other routes.
- Haifa aims to become a significant regional trade hub, handling international transit cargo.
- The port's Deputy CEO, Zuckerman, highlighted the missed opportunity and the need for border efficiency.
The Bay Terminal in Haifa Port experienced a significant drop in activity, losing between 56% and 63% of its pre-war volume, according to Deputy CEO Zuckerman. While activity has recovered to nearly 60,000 TEUs per month, it remains about a quarter below 2023 levels. Zuckerman noted that the port has the capacity to handle more cargo and sees container volume as an indicator of the Israeli economy's confidence.
A major missed economic opportunity arose from disruptions in the Strait of Hormuz, which created demand for an alternative trade route. This route would involve trucking goods through Saudi Arabia and Jordan, entering Israel, and then loading them onto ships for Europe. Zuckerman stated that the demand for this route increased dramatically, but the capacity at the Jordan-Israel border crossing was insufficient to handle the surge.
He reported hearing of 14 to 20-day waiting times at the border crossing, which he believes diverted some cargo to routes through Lebanon, Syria, and Turkey. These delays significantly impacted the economic viability of the alternative route, which could have generated substantial revenue for Israeli logistics companies, particularly in northern Israel.
Zuckerman emphasized that improving border crossing efficiency requires coordination between various authorities. He expressed optimism that if these issues are addressed, Haifa could become a significant regional trade hub, handling substantial cargo from the Arabian Peninsula. However, he cautioned that this opportunity is time-sensitive and depends on the stability of regional trade routes.
The Bay Terminal, operated by China's SIPG, aims to become a major regional trade center by handling international transit cargo. The vision is for large ships to unload containers destined for Israel and other countries, with some being transferred to smaller vessels for onward shipment to Mediterranean ports. Zuckerman anticipates this could be realized within one to two years, contingent on regional stability and shipping company decisions.