"The current distress of Zim, following its privatization, cannot be considered as a problem of its private owners. That is a narrow viewpoint that fails to consider Israel's national interest," said Israel Shippers Council chairman Gad Sheffer today.
Sheffer added, "The damage from the loss of this anchor of marine shipping to and from Israel, and of Israel's foreign trade, will be far greater than any aid injected into Zim to rescue it from the crisis."
Zim Integrated Shipping Services Ltd. is a wholly-owned subsidiary of Israel Corporation (TASE: ILCO), controlled by Sammy and Idan Ofer's Ofer Holdings Group.
The Israel Shippers Council represents importers and exporters. Sheffer called on the government to immediately find ways to help Zim, which do not necessarily mean a direct capital injection. "The government could provide guarantees against some of the company's debts, for example to foreign shipping companies, or against a lien on assets, such as its new ships. We're not talking about help for tycoons, but help for the Israeli economy," he said.
Sheffer noted that Israel's seaports handle 97% of the country's foreign trade, and that Israel must have a reliable and continuous shipping company. Zim has fulfilled this role for years, even after its privatization.
Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2009
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