What are the main concerns facing critical infrastructures is Israel at present? Ashdod Port chairperson Shaul Schneider and Mekorot National Water Company CEO Amit Lang talked to “Globes” reporter Asaf Zagrizak at the 32nd “Globes” Israel Business Conference about the challenges they see.
They say that the ports can see changes in the Israeli economy three months in advance. What sort of demand are we heading for
Schneider: “We recorded a 22% rise in activity in the first nine months of this year in comparison with the corresponding period of 2024. NIS 100 million operating profit. This is especially noticeable in general cargo (i.e., non-container cargo such as steel and wood for construction, I.E.). Israel is going in a positive direction, and were in an interval in the security events, but the story isn’t over.”
Schneider added however that good exports were not in good shape. “We never were strong in goods exports, but now there are even larger gaps versus imports.”
On water infrastructure, Lang said,”We’re in the last third of November, and there’s a hamsin outside, and we need to invest in systems to bring water to areas that need it. The system needs to connect water to areas that are still reliant on local sources. We’ll raise investment to NIS 1.6-1.7 billion, and that will keep the water economy in the good place that it’s in today.”
Mekorot also operates as a developer overseas. “Israel has a holding in desalination installations in Cyprus that produce a large proportion of the water consumed. Jordan also relies on our agreements with them, and that will probably continue, and even increase,” Lang said, adding “It’s worth looking to see what’s happening with Syria. Israel has the potential to be a supplier of water to the region, and thus create a geopolitical fabric. We know the terrain, and Israel has the potential to be a supplier of water to Syria, but we don’t determine policy.”
Asked about transporting water to the rest of Israel, Lang said, “There will be challenges in the next two to three years, including a certain shortage in the water supply, chiefly for agriculture. There are decisions that were not made in time. There is desalinated water in the coastal region, but we don’t have pipes reaching the furthest places, and so when there’s an extreme drought, some of the local sources such as on the Golan Heights and in the Arava dry up, and it’s not possible to transport the water we have to those areas.”
The decisions on expanding Israel’s water infrastructure have however been made. “We’re ready for the challenges of the future. We can’t rely as we have in the past on regional sources just to save money,” Lang said. In fact, he stressed, “Israel’s water tariff is not high by international comparison.”
“No objection to flotation of the port”
Ashdod Port is the last remaining state-owned port in Israel. You are competing with five privately-owned ports. How are you coping?
Schneider: “Ashdod Port is a critical infrastructure that has to function non-stop, and there’s excessive regulation of us. We’re competing with significant players such as the Adani group and the Chinese government, but we can also be a critical infrastructure and support the military, and at the same time compete extremely well with the private ports. The numbers demonstrate that: we are maintaining a market share of 40%. It’s a pity that in order to create healthy competition, instead of letting everyone develop, they tie our hands and feet to make people think that we need to be privatized.
“You can’t rely on foreign infrastructure when you’re in a challenging situation. In the war, Ashdod Port provided the needs of the economy and of the military. The number of ships carrying defense equipment that Ashdod Port unloaded was historic. That was thanks to our workers who didn’t get down from the cranes even when there were air-raid sirens. They provided support for the navy as well.”
On the possible model for Ashdod Port, Schneider spoke of “interim solutions” that will generate revenue and dividends for the state and at the same time enable the company to compete, such as a flotation. “I don’t object. The government of Israel will have to make a decision, and we will act accordingly. We’re ready for it. I proposed a plan for a flotation of a minority of the shares up to 49%, which will bring in NIS 1 billion to the company and another NIS 1 billion dividend to the state. We need to renew cranes and quays and build more power sub-stations. We have to be able to function in extreme scenarios.”
“Let’s reduce regulation”
At this point, the two senior managers put questions to each other. Lang asked Schenider: “Do you think that the port as a government company can compete proudly with the private market? Not just because of the workers, but because of the obligation to hold tenders. Can it be done over time?”
“The regulators need to look at the broad picture,” Schneider replied, “What the country needs and what the country can allow and what not. If we want a government port, we need to remove obstacles and shackles. We have twelve regulators monitoring us daily, hour by hour, and it’s impossible to win the game that way. Let’s reduce regulation and allow the company to move forward without obstacles, and then there will be free and fair competition. Otherwise, it will lead to the destruction of critical infrastructure.”
Schneider asked Lang, “What will happen if they introduce private players into the water industry as well, apart from production?”
“There’s nothing that makes economic sense to remove from Mekorot, because it’s a natural monopoly,” Lang replied. “They tried to transfer boring outside the company, but the risks were too great. Mekorot is efficient and strong by every international benchmark. There is no other water supplier capable of doing this.”
Full disclosure: The Israel Business Conference is being held in cooperation with Bank Hapoalim and Phoenix Group and sponsored by Bezeq, El Al, Tnuva, Electra, Armis, Haifa Group, Hamilton Lane Israel, Doral, Shikun & Binui, BlackRock, Bazan, Pagaya, KPMG, Nespresso, Egged, Zeekr, ICL, and the Israel Medical Association, and with the participation of Israel Ports. Co., Mekorot, Ashdod Port, and the Israel Innovation Authority.
Published by Globes, Israel business news – en.globes.co.il – on November 24, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
