The US Navy said it may halt operations in Haifa once a Chinese firm takes over the port in 2021, following an agreement with Israel’s national security cabinet.
Haifa, the largest port city in Israel, has regularly hosted US-Israeli naval drills and American ships. However, the 2015 agreement between Israel’s Transportation Ministry and Shanghai International Port Group (SIPG), which is partly state-owned, could cast a shadow of doubt over the future of the US-Israeli partnership, the Jerusalem Post reported.
The agreement grants SIPG control over the port for 25 years beginning in 2021. The company paid $2 billion for the project and reportedly plans to transform the port’s bay terminal into the largest harbour in the country.
According to sources familiar with the matter, US defence officials privately shared concerns with their Israeli counterparts, while the Israeli government has agreed to a “review of the agreement at a high level,” among members of the inner cabinet.The seaport is also not far from an Israeli navy base, where Israel hosts its submarine fleet; and, according to sources, China’s shipping operations will be in close proximity to the fleet, thus posing a serious security risk.