Papo Maritime win Eilat port franchise for NIS 120m

Port2port News Service
Nov 12, 2012 
The government of Israel approved the Nakash brothers offer of NIS120 million over a period of 15 years.
Papo Maritime Ltd., owned by the Nakash brothers, has gained the Government tenders committee approval for the acquisition of Eilat port's operations for NIS 120 million, for the next 15 years. 
Papo maritime, is owned by brothers Avi, Rafi and Joseph Nakash, has agreed to pay the government NIS 120 million for the franchise, after bidding NIS 100.5 million last month and improving on the offer twice. 
The Port of Eilat is the only Israeli port on the Red Sea, located at the northern tip of the Gulf of Aqaba. It has significant economic and strategic importance. The Port of Eilat was opened in 1957 and is today mainly used for trading with Far East countries as it allows Israeli shipping to reach the Indian Ocean without having to sail through the Suez Canal. 
The government published the tender for full-ownership of the Eilat Port Company's operation a year ago. The franchisee will operate the port for 15 years, with an option to extend for ten more years. Exercise of the option is subject to meeting trade targets. Some 70% of Eilat port's activity is dedicated to import of automobiles from the Far East. Containers of imported products have not been seen at the port since 2006, when ZIM Integrated Shipping Services suspended its container operations there and transferred its shipping routes to the Suez Canal, including Ashdod and Haifa ports