Dubai-based DP World has teamed up with an Israeli firm to bid for the port of Haifa, establish a yard venture and develop new trade lanes in the Middle East.
The announcement came after Israel, Bahrain and the United Arab Emirates signed US-brokered peace accords to normalise their relations at the White House on Tuesday.
State-backed DP World said it signed memorandums of understanding (MOAs) with Shlomi Fogel-owned DoverTower, which owns stakes in Israel Shipyards and the Israeli port of Eilat.
“I believe that this agreement is just the beginning of mutual and long collaboration and more agreements will follow between DP World and DoverTower across different industries,” DoverTower chairman Fogel said in a joint statement.
“I am also happy to announce that DP World and Israel Shipyards will collaborate to establish a joint venture that will participate in the tender for privatisation of the Port of Haifa.”
Earlier this year, the Israeli government announced it intends to privatise the country's largest port in the coming quarters and the new investor would be required to renew terminal infrastructure.
China’s Shanghai International Port Group is due to begin operating a new, adjacent container terminal with an annual capacity of 1.86m teu under a 25-year concession agreement from next year.
Shipyard venture
Separately, DP World said its subsidiary Drydocks World would explore business opportunities with Israel Shipyards on a joint venture for developing, manufacturing and marketing vessels and industrial products.
Both yards are known by their shiprepair businesses in the region.
Moreover, the maritime conglomerate and Dubai Customs will be exploring opportunities to develop trade links between Israel, the UAE and other Middle East countries.
In particular, DP World will study a direct shipping route between Eilat and Jebel Ali, the region’s busiest port, and assess the development of free zones in Israel.
“The MOUs will contribute to the efforts to tap economic and trade cooperation opportunities, and facilitate development-oriented linkages between the two countries,” DP World chairman and chief executive Sultan Ahmed bin Sulayem said.
“DP World’s mission is to enable global trade — our work to build trade routes between the UAE, Israel and beyond will help our customers to do business in the region more easily and efficiently.”
