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Battle of the ports: Haifa sues Ashdod for 117 million shekels

According to Port of Haifa officials, the Port of Ashdod illegally provided special discounts to car importers, incentivizing them to use the southern seaport.

By Lauren Marcus, World Israel News

On Wednesday, in an unusual move between government entities, the Port of Haifa sued the Port of Ashdod in the Beer Sheba District Court, alleging unfair competition.

The Port of Haifa in Israel’s north and the southern Port of Ashdod are the two largest international seaports in the Jewish State.

Millions of tons of cargo pass through the ports each year – but the Port of Haifa’s lawsuit claims that the Port of Ashdod has illegally created a monopoly on the importation of certain items.

The lawsuit’s central complaint is that the Port of Ashdod has monopolized the lucrative vehicle importation industry in Israel, depriving the Port of Haifa of some 117 million shekels in potential profits.

“Over the years, the Port of Ashdod has abused its monopoly, in a systematic and deliberate and unlawful manner, in order to deepen its control of the market and to eliminate any possibility of competition from the Port of Haifa. For years the Port of Ashdod abused its position,” wrote the Port of Haifa’s attorneys.

According to Port of Haifa officials, the Port of Ashdod illegally provided special discounts to car importers, incentivizing them to use the southern port.

“Importers who want to receive a significant discount are required to import all or almost all vehicles they bring to Israel via the Port of Ashdod,” the complaint continues.

“The purpose of these offers was to motivate each of the [vehicle] importers to unload all of their vehicles in the Port of Ashdod, and make the Port of Haifa an undesirable option.”

The lawsuit notes that the Port of Ashdod was officially declared as a monopoly in vehicle importation in 2015 by an Israeli government commission, and that the Port of Haifa had tried to previously resolve the issue without using the legal system.

The Port of Ashdod told Channel 12 News they had not yet received a copy of the lawsuit and were unable to comment on the allegations.