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Ashdod Port Company is entering the field of chemical transportation

Ashdod Port Company signed agreements to establish three chemical farms that are expected to generate hundreds of millions of shekels in revenue during the period of the agreement. For many years chemicals have been transported in Israel through the chemicals terminal at Haifa Port. The entire chemicals industry in the southern and central regions of Israel was forced to conduct chemical import and export activity through the northern port, with unnecessary transport of thousands of tanks per year throughout the country. In some cases the transportation including hazardous materials near population centers.

 

The initiative to establish a chemical farm at Ashdod Port first came up about a decade ago. Over the last year, under new Port CEO Moshe (Shiko) Zana, the topic was again advanced, through a special team that included representatives from the Customer Relations, Business Development, Finance and Legal Counsel Divisions. The establishment of the chemical storage farms is one of the Port Company's ways to address the expected competition in the coming year in the container sector, with new port activity that will generate more revenue for the port.

 

The agreements to establish the farms were signed with three companies: Gadot Chemicals, Chemotal and Arava Mines.

 

Each one of the companies was designated a specific area that allows for them to set up chemical tanks and pipes that will go from the farm to the dock at the port for loading and unloading. Each one of the companies was allotted 25 years of activity, which allows them to establish an innovative tank system that will maintain the highest standards for safety and environmental protection, with an investment of tens of millions of shekels.

 

Shiko Zana, CEO of the Port Company, adds: “The establishment of a chemical farm at Ashdod Port is significant news for the Israeli industrial sector, which will now be able to choose from various options for transporting chemicals at Ashdod Port. The companies will compete for the customers and will thus cut costs and improve the service officed to the industry. This is an additional strategic step that is part of the port's preparations for the upcoming competition and we expect this activity to generate significant revenue".

 

The Port Company expects the process of setting up the three farms to take no more than 36 months, ultimately establishing a system that is capable of handling a scope of hundreds of thousands of tons per year.