Bypassing the Suez Canal: Israel to Have China Construct The Eilat Railway
Transport Minister Yisrael Katz and China's Minister of Transport Li
Shenglin signed the memorandum of understanding in Beijing.
by Rhonda Spivak, July 11, 2012
The biggest piece of news that emerged from Israel this past week (July 3)
is one you may have heard nothing about--but it is a game changer in terms
of elevating Israel's economic/strategic position in the Middle East.
For decades, Egypt has been able to potentially isolate Israeli and strangle
trade to the Israeli posts of Ashdod and Haifa by threatening to/ and or
closing the Suez Canal to marine traffic.
But this is about to change. Last week, as reported in the Globes, Israel
and China signed historic cooperation agreements to build the Eilat railway,
linking the port of Eilat to the ports of Ashdod and Haifa. This will enable
cargo boats to dock at Eilat, bypass the Suez Canal altogether and then the
cargo will travel by high speed rail to the port of Ashdod, or Haifa--this
route will be far faster than the same boat having to reach the
Mediterranean through the Suez canal. Once cargo reaches Ashdod or Haifa it
can travel from there onwards to the European mainland.
This means that if ever the Egyptian government in the future tried to block
Israeli access to the Suez Canal, e Israeli economy will not miss a beat.
In the town of Ashdod, where I visited earlier in the year, this news is
creating excitement--the port of Ashdod, which is not that large, is likely
to experience increased activity. "We are anticipating an economic boom once
the cargo rail is built. Ashdod could become a major hub of activity," an
Ashdod resident said.
Since the Arab spring in Tahrir Square, Egypt's relations with Israel are
expected to be on less solid footing and as another Ashdod resident said,
"It's important that we have this new rail route which enables Israel to be
at the heart of a trading route, not dependent on others."
"Given that since the fall of Mubarak, the gas pipeline from Egypt to Israel
has been blown up several times by terrorists in the Sinai, the need for
Israel not to be dependent on Egypt has become clearer and clearer."
Near the port of Ashdod, there are plans to build new apartment blocks with
views to the sea, and real estate prices are expected to rise. Once the
railway is completed it will only take two hours for a person to travel by
train from Tel-Aviv. Currently, it takes approximately five hours to drive.
There are plans for a new university to be built in Eilat--all part of the
promised economic boom that will be the consequences of the new trade route.
The co-operation between Israel and China for the building of the Eilat
railway may also apply to other future related projects. Israel's Minister
of Transport Yisrael Katz and China's Minister of Transport Li Shenglin
signed the memorandum of understanding in Beijing.
After the construction of the cargo rail line that will link Israel's
Mediterranean ports in Ashdod and Haifa with the Eilat Port, there are also
plans to extend the line to Jordan's Aqaba Port.
Prime Minister Netanyahu is likely to be popular in Ashdod because of this
new route. "Bibi has understood the importance of this, it has strategic and
policy significance.
Israeli sources told "Globes" that the Chinese also consider the project to
be important, as it fits in with China's global strategy to strengthen
critical trade routes. The 180-kilometer line will run through the Arava
Valley and Nahal Zinn.
The estimated cost of the line is at least NIS 20 billion. The Chinese have
proposed financing part of the cost through the government-owned China
Development Industrial Bank, and that Israel handle the project's
operations.
According to the Globes, Israel is considering awarding construction of the
project to Chinese companies, because of their rapid work, and is therefore
considering a government-to-government agreement to bypass the Tenders Law
in awarding the franchise. A cabinet decision from February instructed Prime
Minister's Office director general Harel Locker to recommend to the
government ways of financing the project.
Thé Mulindwas Communication Group
"With Yoweri Museveni and Dr. Kiiza Besigye Uganda is in anarchy"
Kuungana Mulindwa Mawasiliano Kikundi
"Pamoja na Yoweri Museveni na Dk. Kiiza Besigye Uganda ni katika machafuko"
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