Haifa Port Owners Seek 1 Billion Shekel Dividend Amid Legal and Labor Tensions
Israel's Accountant General is reviewing a proposal allowing Haifa Port owners Adani and Gadot to withdraw a 1 billion shekel dividend. The move faces potential legal challenges from rival bidders and fierce pushback from port workers.
The Accountant General, Michal Abadi-Boiangiu, is expected to rule in the coming days on a recommendation allowing the owners of Haifa Port—India's Adani Group and Israel's Gadot—to withdraw a 1 billion shekel dividend from the port's cash reserves, which currently stand at approximately 2.5 billion shekels. Acquired by the consortium in 2023 for a 30-year concession, the port's purchase terms explicitly prohibited touching the cash reserves until extensive infrastructure investments were completed.
To amend these original tender conditions, Adani-Gadot has committed to depositing 1 billion shekels into an escrow account held by Israel Ports Company (IPC). If no new directives are issued, the funds will be utilized in January 2030 to construct a deep-water quay at the port. IPC estimates that while an additional deep-water quay is not immediately necessary, the infrastructure preparations are vital for Israel's future economic needs.
The decision has drawn sharp criticism and potential legal challenges from rival bidders in the original 2023 tender, such as Israel Shipyards, Shafir Group, and DP World, who lost to Adani-Gadot's exceptionally high bid of 4.1 billion shekels. Industry experts warn these competitors could petition the High Court of Justice to annul the tender, arguing that retrospective rule changes disadvantaged them. However, the Government Companies Authority dismisses this, noting a massive 1.4 billion shekel gap between Adani's winning bid and DP World's runner-up offer.
Beyond legal hurdles, the agreement risks exacerbating ongoing tensions with port workers. The Histadrut labor federation recently accused management of operational stagnation, aging equipment, and deadlocks over early retirement packages for veteran employees. While management cites recent investments—including six new cranes—workers demand prioritized infrastructure reinvestment over shareholder dividends.
