Eilat Port on the brink of closure .. From profits in millions to collapse in a moment economy

The Israeli newspaper Globes, specialized in economic affairs, reported that Eilat port Its doors will be closed in front of the marine movement next Sunday, after the Eilat municipality seized its bank accounts due to accumulated tax debts exceeding 600,000 shekels (about 162 thousand dollars) per month.

According to Globes quoted the emergency body, the port administration has been officially informed of the full reservation decision as a result of the failure to pay taxes, amid warnings that this procedure will lead to a full stopping in the port activity, including the disruption of locomotives and ships, stopping the support of the Israeli navy in the Red Sea, and stopping the export of the potash from the Dead Sea factories of the iCL company as well as influencing a line Europe’s tubes.

Huge debts and comprehensive disruption

The official message, which Globes reviewed, indicated that the continuation of this situation may lead to “a deterioration in the port equipment, and long -term damage to the operational infrastructure such as cranes and electrical systems.”

The report also explained that the Eilat Port has not worked its full card since the outbreak of the war (on Gaza And south LebanonThe risk of Houthi attacks on navigation in Red Sea.

It is noteworthy that the Houthi group announced yesterday, Tuesday, that its forces attacked the Eilat port and a military goal in Israel by 3 drones.

The Houthi group said, “Our operations are continuing until the aggression on Gaza stopped and lifted the siege on it, and Yemen plays its role according to its capabilities and capabilities, in rejection of the aggression and the siege on Gaza, and a refusal to allow the Arab and Islamic countries.”

The ownership of the operating rights of this port since 2012 is due to the Naqash Brothers Company, who are American Israeli businessmen, who have received the concession for 15 years for 120 million shekels (about 32.4 million dollars) with the option of extension for another 10 years.

Globes notes that the deal was then met with wide suspicion in the economic circles, especially since this company was the only offer in the tender, and it was able to reap profits exceeding hundreds of millions of shekels before the war.

The data of the Economy Committee is revealed in Knesset The owners withdrew profits of 162 million shekels (about 43.7 million dollars) during the four years before the war, while the port administration today failed to pay the 3.2 million shekels fees (about 864 thousand dollars), not to mention the taxes due to the municipality.

A commercial collapse after the closure

In 2023, Eilat port achieved revenues of 212 million shekels (about 57.2 million dollars), but the revenues fell in 2024 by 80% to only 42 million shekels (about $ 11.3 million) after the closing of the track of trade across the Red Sea.

The Israeli port received 134 ships and 150,000 cars, compared to only 16 ships in 2024, and only 6 ships in the first half of 2025, according to Globes.

Even with the state’s attempts to help the port, which included guaranteeing a loan of 30 million shekels (about 8.1 million dollars) – only 16 million (about 4.3 million dollars) was used from it – and compensation of 15 million shekels (about 4.05 million dollars) has been used, the report confirms that the government is still criticizing the non -payment of the port to the municipality despite all this support.

Government anger

The Director General of the Ministry of Communications, Moshe Bin Zakin – to the newspaper Globes – stated that he had held an emergency meeting with the relevant ministries, Eilat municipality and the port administration, in a recent attempt to prevent closure.

However, the newspaper notes that the government is looking with suspicion of the port’s compensation demands, especially since its owners have gone on huge profits in the past, and today they must “open their pockets” in times of distress.

Although the Eilat port is managed by the private sector, it is considered a vital strategic origin for the occupying power, especially in light of its reliance on the logistical operations of the army, potash and oil exports.

However, Globes concludes its report by questioning whether the current government efforts are sufficient to save the Eilat port from complete collapse.