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Israel s Thriving Shipping Industry

By DAVID JONES

(Copyright Mg, JTA. Inc.)

Israel's shipping industry is- one
of the country's two or three
largest commercial enterprises and
most important foreign currency
earner. It grew by 60 per cent
over the last three years to total
109 ocean-going vessels of 2,000,-
000 tons. Israeli shipping com-
panies plan to invest $300,000.000
in 33 new ships of 2,500,000 tons
during the next five years.
The expansion plans stem from
the general prosperity of world
shipping and a dramatic rise in
the volume of cargo passing
through Israeli ports. Israeli com-
panies have been carrying an in
creasingly large share of that
movement. In addition. freight
rates have been on the rise and
the 1967 devaluation of the Israel
pound exchange rate from IL 3 to
IL 3.50 to the dollar has increased
the nominal income of national
shipping lines. Freight tariffs are
expressed in terms of dollars.
As a result of these deVelop-
ments, the Israel merchant
fleet's annual revenue has in-
60
creased by approximately
per cent since 1965. It soared
42 per cent in 1968 alone.
In order to maintain a competi-
tive position Israel's fleet has to
keep pace with world shipping.
There has been a revolution in
cargo handling in recent years.
For reasons of speed, economy
and protection against pilferage,
general freight is carried increas-
ingly in sealed containers, in truck
trailers that are driven on and oll
ships and even in lighters that are
floated on and off. These methods
require specialized ship types and
special facilities ashore. Israel no
to now has been sorely lacking in
ships and container-
container
handling facilities.
Israel's merchant fleet under-
went a rapid modernization in the
late 1950s with new ships built in
West Germany under terms of the
Bonn-Israel reparations p a c t.
These vessels were up-to-date but
conventional. Most of them, and
similar ships built in the 1960's,
are now technologically obsoles-
cent.

Israel's first container ships are
expected to be delivered at the
end of 1972. Four will be "roll-on-
roll-off" freighters each with a
capacity of 90 truck trailers of
360 20-foot containers: alternat-
ively they could carry 360 motor
cars. In addition, four multi-pin,
pose "Clyde" type freighters, each
with a 450 container rapacity, have
been ordered in British - yards.
Until the new ships arc ready, uni-
tized cargoes will be carried
aboard conventional vessels.
Zim, Israel's largest shipping
company, is investing $90,000.000
in eight 120,000 deadweight ton
bulk carriers intended to earn dol-
lars on international trade routes.
The company is also building
supertankers of up to 250,000 dead-
weight tons each to transport crude
oil to Israel and on international
routes. There were 13 tankers op-
erating under the Israel flag at
the end of 1969 and consider-
ably more are owned wholly or
partially by Israeli interests but
operated for various reasons under
other flags.
On a tonnage per capita basis,
Israel probably has the world's
largest merchant fleet. IL has 10
shipping companies operating on
foreign trade routes, though only
three of them are sizable. These
are the Zim Lines, with 70 ships
of 1,100,000 tons under the Israel
flag and several dozen more
foreign-flag vessels on long term
charter; Cargo Ships El Yam,
Ltd., which owns about 35 per
cent of Israel's tonnage, mainly
bulk carriers and tankers; and
Maritime Fruit Carriers, Ltd.,
which owns eight vessels and is
engaged principally in the trans-
port of fresh fruits, vegetables
and other perishables.

10 — Friday, October 2, 1970

Zim Lines marked Its 25th an-
niversary last June. It was found-
ed three years before statehood by
the Jewish Agency, Histadrut and
the Israel Maritime League, pri-
marily as an immigrant carrier.
Latterly, the bulk of its stock was
acquired by the government. The
company underwent a change of
management and drastic reorgan-
ization three years ago after op-
erating at a heavy loss. It has
showed a modest profit since then.
Early this year the bulk of the
government's shares were trans-
ferred to the Israel Corporation.
an investment company establish.
ed by a group of international Jew-
ish businessmen and financiers as
an outcome of the 1968 Jerusalem
Economic Conference called by
the late Premier Levi Eshkol.
Recently Zim got a new manag-
ing director in the person of Col.
Moshe Kashti, formerly director
general of the defense ministry.
who is overseeing the firm's ex-
pansion plans.

Foreign Projects Mounted by Israeli Wain Fins
maw n
TEL AVIV (JTA) — Tahal, the currently working Is

Paz

joyed her best season In the spring
and summer of 1967 — after the
Six-Day War — when she made
her final voyages under the Is-
rael flag — a series of cruises
from New York to Expo-67 in
Montreal.
The Israel and Zion had already
gone to Portuguese buyers. The
Jerusalem and Herzl were sold to
American firms and the Moledet
is laid up pending sale. Zim Lines
presently operates two small pas-
senger car ferries — the Dan and
Nili --r on behalf of the govern-
ment. They are to be sold. Zim
has divorced its passenger serv-
ices from the rest of the com-
pany. A new affiliate, Zim Pas-
senger Lines Ltd., was set up. It
plans to acquire a new car ferry.
But with a few exceptions, the
money in shipping is made from
hauling freight and in that area
the fut'Ure of Israel's merchant
fleet is promising.

Israeli water-planning company, is countries in the Near East, Om
undertaking major international East and Latin America. Its cu
rent projects involve some sum-
development research projects.
One project in Panama will in- MO.
volve a study of agricultural de-
velopment, to be financed by -inter-
CAMS TO BE DEMI
national sources. The study itself
T. say woe. Mee siren insehir•
would be financed by the Pana-
ed
re
drive year see
manian government.
11
Legally insured end I.C.C.
A larger project is a study of a
DRIVEAWAY SERVICE
master plan for agricultural and
industrial development along the
9970 Grand River
Amazon River in Brazil—a project
Detroit, Mich. 48204

=

desired by the government there.

Tahal, which has won interna-
tional praise for such surveys, is

Cargo Ships El Yam, founded in Jews, Christians Join
1953, is closely associated with Moslems for Seminar
the Israel Discount Bank and is
COBLENZ, West Germany (JTA)
a purely private enterprise.
—A group of Jewish, Christian and
Israel's passenger liner eper-
Moslem religious leaders and
ations turned out to be one of
teachers ended an interfaith semi-
the few major failures that can
nar here with a declaration that
be recorded against that coun-
they had experienced "a deep
try in the business sphere. It is
fellowship in that bond which is
attributable in part to the phen-
offered by our belief that we are
omenal rise of air transportation
the spiritual heirs of Abraham."
over the last 10 years which
The statement said that more
usurped the passenger ships'
seminars between the three faiths
role as mass transports and
were planned. It explained the
(creed them into the cruises —
gathering as the result of "an
"floating resort" — business. In
urgent desire to comprehend and
part, it was due — and Israelis
be comprehended" and said, "We
acknowledge this — to lack of
have expounded to each other our
experience in the intricacies of
insight into our respective reli-
passenger liner management and
gious problems, and our mutual
an inability to adapt to the new
understanding has been stimu-
situation in which elegance of
lated . ."
service and excellence of cuisine
rather than regular transporta -
tion became the ocean liners'
chief marketable product.
During the late 1950s and early
'60s, the Zim Lines operated five
modern passenger ships in trans-
Atlantic, trans-Mediterranean and
cruise services. The S/S Israel
and S/S Zion on the New York-
Haifa run, were extremely popu-
lar with tourists. The two ships
carried 11,000 passengers annu-
ally and a goodly amount of freight.
But their clientele largely took to
the air by the 1960s and fast
freighters that did not have to ad-
here to passenger time-tables were
found more suitable- for cargo.
The S/S Jerusalem and S/S
Theodor Herzl served on the short
cross-Mediterranean run, made oc-
casional trans-Atlantic voyages to
North or South America and many
cruises also distinguished by their
informality. The motorship Mole-
det was employed exclusively on
the Israel-Italy-France service and
carried many immigrants and low
budget tourists.

el.%01,61-1

While most American Jews are
enthusiastic about Israel they dem-
onstrated a marked preference for
Dutch, French, British, Italian,
Anierican or Greek ships when it
came to paying $50 a day and up
for an ocean-going holiday. The
Shalom was plagued with ' bad
"word-of-mouth" reports on food
and service.
The ship improved steadily, hot
by 1967 she had already chalked
up stunning losses and early that
year she was sold to a West Ger-
man firm for delivery the follow-
ing October. Ironically, she en

THE DETROIT JEWISH NEWS

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AgIANA

In 1964, Israel commissioned its
most ambitious passenger ship,
the 25,000-ton luxury liner Shalom
which was supposed to put Zim
on a par with Cunard, the French
Line and the other big name com-
panies. The $20,000.000 French-
built vessel was truly a beauty.
But by the time she entered serv-
ice, trans-Atlantic passenger ship
traffic was declining rapidly and
for a variety, of reasons the Shalom
failed to "make it" on the Ameri-
can cruise market.

WE 1-0620-21-22

.anon nzitz Fuel
mow n3r1

worn 015V

Our best wishes for cr year

of

5731

WE DELIVER ,

abundance, peace

and prosperity

Hordes Agency, Inc.

INSURANCE

24100 Southfield Rd., Suite 320
Southfield., Mich. 48075

Mrs.

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Mr. & Mrs. William

A Reder and Staff'

