The Israeli finance and transportation ministers last week signed the long-awaited ports user rates reform, regulations to reform the service fees charged by Israel's ports, according to a report in Port2Port.
The move clears the way for the IPOs (Initial Public Offerings) of the two main ports companies, Haifa Port Company and Ashdod Port Company.
The changes will take effect on October 1, although the reforms will reportedly take a full 10 years to implement.
Deputy budget director Amit Land believed the reform would 'improve service and will ultimately also increase the ports' competitiveness'.
The main change, according to Port2Port, will be the cancellation of wharfage fees, which today contribute half of the ports' incomes and are set as a percentage of the value of the goods imported or exported, with no relation to the actual costs involved in handling the cargo.
This system will be replaced by a new usage fee, which will be based on the needs of developing the port infrastructure.
According to Port2Port, the new regulations favour importers, with exporters, shipping companies and the Ashdod and Haifa port companies expect to lose out.
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