The Port of Haifa. Photo: Haifa Municipality/Zvi Roger

i24 News – Israel opened its Haifa-based Bay Port, a terminal operated by China’s Shanghai International Port Group, following a celebration on Wednesday.

The new facility, worth approximately $1.7 billion dollars, will allow passage of larger-scale cargo ships. Vessels carrying over 18,000 containers are now able to dock along Israel’s coast, according to Reuters.

The sale marks initial progress in a series of government efforts to cut down on long wait times in Israel’s shipping industry. The government has attempted to sell its state-owned ports, turning development over to international markets and the private sector as a way to boost their efficiency.

Around 99% of all transferred goods in Israel are transported through the sea, Reuters writes, highlighting the need for an effective and well-organized series of shipping facilities. The deal indicates strong potential for Haifa to become a major regional transit hub, especially with a recent warming of tensions with Israel’s neighbors.

Israel Transport Minister Meirav Michaeli expressed optimism on the project, stating, “I’m sure we can leverage this opportunity not just for local prosperity, but for realizing opportunities and making a real contribution to our neighbors in the Middle East,” in a quote from Reuters.

Later in the year, the Swiss-based company Terminal Investment Limited is also expected to open a port of their own in Ashdod.

The US previously expressed concerns about China operating a port within one of its key Middle Eastern allies.