Zim delays closure of Eilat cargo line

The delay in closing the company’s Eilat line is intended to enable the Eilat Port to find alternative operators.

Zim Integrated Shipping Services Ltd. yesterday announced that it would close its Eilat cargo terminal only in summer, acceding to a request by Histadrut chairman Ofer Eini and Manufacturers Association president Shraga Brosh.

Zim said it would operate a new line to the Ashdod and Haifa ports. The delay in closing the company’s Eilat line is intended to enable the Eilat Port Company Ltd. to find alternative operators to replace the reduced container shipping by Zim.

Zim recently announced that it planned to move its container line from Eilat to Djibouti at the southern tip of the Red Sea, and to Ashdod and Haifa. Eilat port workers fear that the move will cause lay-offs, and consequently disrupted the unlading of Zim ships.

Eilat Port workers committee chairman Avi Atias said in response that this was no real solution, but only an extension to the government to strengthen the port and town.

Ofer Brothers controls Zim through Israel Corp. (TASE: ILCO).

Published by Globes [online], Israel business news - www.globes.co.il - on February 20, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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