Dubai-based largest port operator DP World has pulled out of a joint bid with an Israeli company to privatize Israel’s Haifa port, rejecting one of the largest trade and economic ventures since the UAE normalized relations with Tel Aviv.
The Dubai logistics company did not provide an explanation for its withdrawal from the bid. “Although we have decided not to participate further in the privatization of the Port of Haifa, we remain interested in investing in Israel as a key trade hub,” the company said in a statement.
DP World had signed an agreement with Israel Shipyards Industries for exclusive cooperation in the privatization of the Haifa port, one of Israel’s two main sea terminals on its Mediterranean coast.
Israel’s Government Companies Authority confirmed that DP World has requested to withdraw from the project and that Israel Shipyards Industries has asked to proceed on its own.
According to the reports, the winner of the Haifa port tender is anticipated to be announced before the end of 2021.
The joint bid was announced after Israel and the UAE agreed to establish formal relations last year, under an agreement brokered by former US President Mr. Donald Trump.
When the partnership was announced in September last year, the two companies had said they would examine opening a direct shipping line between the countries.
To enhance competition and cut costs, Israel is selling its state-owned ports and developing new private docks. Haifa’s port will need to be upgraded in order to compete with a new port being developed in the vicinity by China’s Shanghai International Port Group.
