Ministerial signature clears the way for Haifa and Ashdod IPOs

The reforms come five years after the Ports Authority was restructured, and two years after the first draft proposal on the ports fees was completed. The changes to the port fees will take effect on October 1, 2010, though the reforms will take a full 10 years to implement.

The intention is that following the reform Israel’s ports will begin working much more rationally and that the system of incentives created by the reform will improve service and will ultimately also increase the ports’ competitiveness.

The main change in the newly approved prospectus will involve the cancellation of wharfage fees, which today contribute 50% of the ports’ income of around NIS1bn (US$270m) a year.