Israeli Port Industry Overview

Over 99% of Israel’s International Trade Handled via its Seaports

› 60% of GNP is Trade Dependent

Israel’s Island Economy

57 M Tons

0.35 M Tons

Jordan

Haifa

Ashdod

Eilat *Energy Ports

Ashkelon

Hadera 197 km Israeli Med Coastline

153 km Coastal Land Use

31 km Defense

19 km Ports/Electric/

Desalination Plants

41 km Urban Uses

16 km Rural

40 km Planned Urban

6 km Planned Rural

Geographical Location (Nat. Miles from Canal Entrance – Ashdod: 125; Haifa: 170)

ISRAELI PORT CONNECTIVITY

Black Sea Adriatic Western Europe

Aegean

Haifa Port

Principal Cargo:

Containers

Distillates

Grain

Chemicals

Ashdod Port Principal Cargo:

Containers

Minerals

Vehicles

Metal & Wood Products

Grain

General Cargo

Eilat Port

Principal Cargo:

Minerals

Vehicles

Cargo Traffic (Millions of Tons)

ס

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

19

,30

4

21

,77

4

23

,46

2

26

,40

0

28

,98

1

31

,16

2

29

,41

2

32

,82

0

33

,81

9

35

,06

9

36

,09

1

31

,99

2

33

,40

6

34

,97

2

37

,31

2

37

,71

2

36

,28

6

40

,22

5

41

,22

6

36

,95

3

43

,57

6

45

,38

1

46

,53

2

48

,75

0

48

,23

2

48

,16

5

52

,20

3

Average Annual Growth of 4%

Not including fuel traffic via offshore MBS

T…

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

50

7

56

0

64

7

69

0

74

6

88

6

96

1

1,0

88

1,2

20

1,2

49

1,3

66

1,3

75

1,4

63

1,5

50

1,5

86

1,7

15

1,7

69

1,9

65

2,0

81

2,0

32

2,2

81

2,4

03

2,5

41

2,5

39

2,4

47

2,5

22

2,7

09

Container Traffic (Thousands TEU) Average Annual Growth of 6.6%

Cargo Traffic – 2016 (Thousands of Tons)

Source: IPC

5,934 4,331

19,753

26,974 2,825 2,107

24,086

27,973

2005 Reform Program Objectives

Encourage free market efficiencies

Broaden private sector participation

Foster competition

Improve Israeli competitiveness in the global marketplace

Port Sector - 2017

Shipping & Port

Administration

Israel Ports Company

Haifa Port

Ashdod Port

Governmental Companies

On way to privatization

Eilat Port

Israel Shipyard

Dagon

ICI

Gadot , Tashan

Other Terminal

Operators

SIPG-Bayport

TIL- Southport

Future Operators

Israel Ports Company Port infrastructure (physical and IT) management

and development (waterside/ hinterland)

140 employees

Operating revenue: NIS 916 million (~$240M)

Development budget: NIS 10.9 B (~$2.9 B) not

including projects funded by other sources

Funding requirements: NIS 5-7 B /public

placement 20-25 year term

Physical Infrastructure Development

Technology Development

Logistics

Real Estate Management & Maintenance

Encourage Competitive Operational Environment

Misc. Areas

IPC Operational Activity

Logistics Initiatives

TASC-Yam

“Good Night”

Gate and Driver Licensing Systems

Transport Data Base

Railway initiative

Truck company

Depot

Container Terminal

Other Authorities

Port authority

Custom agency

Shipping agency

Freight forwarder

Exporter/ Importer

Carrier

Rail roads

Rail Terminals

Mainsys

Port Community System

Paperless, Single Window, 24/7, Secure, Uniformity, Web Based Platform

Southport / Bayport Terminal Projects

Series1

-

1,000

2,000

3,000

4,000

5,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2014

2015

2015

2016

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

1,37

5 1,

463

1,55

0 1,

586

1,71

5 1,

769

1,96

5 2,

081

2,03

2 2,

281

2,40

3 2,

541

2,53

9 2,

446

2,44

7 2,

548

2,52

2 2,

729

2,70

9 2,

916

3,02

7

3,14

6

3,27

7

3,40

9

3,54

6

3,68

7

3,83

2

3,98

2

4,13

7

4,29

6

4,46

1

4,63

2

4,80

8

Thou. TEU

ExistingProjected

Container Traffic Forecast (Thousands TEU)

Planning Assumptions - Design vessel

Container vessel – Maersk “EEE Class”

Length: 400m

Width: 59m

Draught: 14.5 – 16 m

Capacity: 18,000 TEU

Haifa Bayport Terminal

Operator: Shanghai International Port Group Ltd.

Period: 24 years, 11 months

Operator’s responsibility: Complete construction, equipment, systems, employees, operations, maintenance

Operational Target: January 2021

Bayport Project

Ashdod Southport Terminal

Operator: Terminal Investment Ltd.

Period: 24 years, 11 months

Operator’s responsibility: Complete construction, equipment, systems, employees, operations, maintenance.

Operational Target: October 2021

Southport Project