Chairman of the Economic Committee, David Bitan: "We will not wait until 'competition takes its course' - we will do everything to speed up competition as quickly as possible and lower the price for the consumer right now."
The Knesset's Research and Information Center informed Hai Fa:
The cost of the delay at the ports - damage to exports of about 16 million NIS per day, and to imports of about 10 million NIS per day, with part of the cost being passed on to consumers.
The study was submitted in preparation for a discussion to be held tomorrow (Monday 13/3/23) at the Knesset's Economic Committee at the initiative of the chairman, MK David Bitan. This is as part of a series of meetings to address the cost of living in Israel, with this time the focus is on reducing waiting times at ports and removing barriers to transporting cargo. Ahead of the meeting, Chairman Bitan requested data from the Knesset's Research and Information Center. The document, written by economist Bat Chen Rotenberg, shows the following data:
- A container ship stayed in the ports in 2021, twenty hours more than in 2019, and a general cargo ship and ships with bulk (kernels), stayed in 2021 an average of 84 hours more, compared to 2019.
- Treasury data shows that each day of delay costs the ship operator about $20, with part of the cost being passed on to importers and exporters, and from there to consumers. The damage to exports is estimated at about 16 million shekels per day in GDP terms, and to imports at about 10 million shekels per day in GDP terms.
- According to the estimate of the Grain Importers Association: the inefficiency in 2020 was worth about NIS 36 per ton of grain, i.e. NIS 200 million for the entire grain industry. In 2021, there was an increase in the waiting times and the excess cost.
Bitan: "Costs that are rolled into the consumer's pocket"
As mentioned, the document was written at the request of Chairman Bitan, who referred to the data and said: "Now it is clear that these are unnecessary costs of tens of millions of shekels per day, which end up being rolled into the consumer's pocket, and the committee headed by me intends to investigate this matter in depth and find ways that will increase competition, make imports more efficient and the export so that in the end the price for the consumer can also decrease."
Chairman Bitan further stated that in the previous discussions it became clear to the committee that the cost of the kernels constitutes about 70% of the cost of the agricultural products from animals (milk, chicken and beef). Against this background he said that the committee intends to deal with the problem now and not wait until the competition affects another number years
The economist of the Research and Information Center, Bat Chen Rotenberg, stated:
"In 2005, the implementation of the reform in the sea ports industry began, which included a gradual transition to the "owner" model, the granting of a license to a private company in Haifa (Israel Shipyards Port), the privatization of the ports of Eilat and Haifa, and the construction of two new privately owned ports. These changes led to the situation in which they operate in 2023 Six ports - three private in Haifa, a public port and a private port in Ashdod and a private port in Eilat. The start of operation of the Gulf port in September 2021 and the South port in February 2022, and in the future the removal of competition barriers (including a 5% market share limit for the port from Israel Shipyards, and the granting of a license for long-term operation to the ports the new ones in some of the docks while creating economic certainty) may lead to increased competition in the sea port industry, to efficiency and shortening of waiting times and to a reduction in import costs which will affect the economy and the cost of living."
The full report - for your reference:
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But you opened 3 more new ports and they don't do the job? Apparently it's all a bluff, and they fell on the port workers all these years, it's all a combination of all the elites in Israel, now we'll throw you out of control, once again their nonsense, the cost of living increases because of the Canal workers, they'll pay back
There are already 6 seaports in the country, exactly how many more are needed to avoid traffic jams and inefficiency?????
I have no idea what he's talking about, I don't understand ants, lol, all the fussy ants are private ants, the cost of living has gone down
Urgent reform is needed. - Have a good week
Senior economist David Bitan's nonsense with false tables. Plagiarism of the government that sold a 100-year-old port to the Indians
Nelsin and sent 50-year-old people to pensions with fat grants until they reached the age of 67.. That's why we need an urgent reform to steal better.