Israeli Port Industry Overview Israel’s Island Economy Over 99% of Israel’s International Trade Handled via its Seaports Jordan 0.35 M Tons 57 M Tons › 60% of GNP is Trade Dependent Haifa Hadera Israeli Med Coastline 197 km Coastal Land Use 153 km Ashdod Ashkelon Defense 31 km Ports/Electric/ 19 km Desalination Plants Urban Uses 41 km Rural 16 km Planned Urban 40 km Planned Rural 6 km Eilat *Energy Ports Geographical Location (Nat. Miles from Canal Entrance – Ashdod: 125; Haifa: 170) ISRAELI PORT CONNECTIVITY Western Europe Adriatic Black Sea Aegean Haifa Port Principal Cargo: Containers Distillates Grain Chemicals Ashdod Port Principal Cargo: Containers Minerals Vehicles Metal & Wood Products Grain General Cargo Eilat Port Principal Cargo: Minerals Vehicles 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 Not including fuel traffic via offshore MBS via offshore fuel traffic including Not of Growth Annual Average Traffic Cargo 1990 19,304 1991 21,774 1992 23,462 1993 26,400 1994 28,981 1995 31,162 1996 29,412 1997 32,820 1998 33,819 1999 35,069 (Millions of Tons) 2000 36,091 2001 31,992 2002 4 33,406 % 2003 34,972 2004 37,312 2005 37,712 2006 36,286 2007 40,225 2008 41,226 2009 36,953 2010 43,576 2011 45,381 2012 46,532 2013 48,750 2014 48,232 2015 48,165 2016 52,203 ס 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 Average Annual Growth of Growth Annual Average Traffic Container 800 600 400 200 - 1990 507 1991 560 1992 647 1993 690 1994 746 1995 886 1996 961 1997 1,088 1998 1,220 1999 1,249 2000 1,366 2001 1,375 6.6 2002 1,463 (Thousands TEU) (Thousands 2003 % 1,550 2004 1,586 2005 1,715 2006 1,769 2007 1,965 2008 2,081 2009 2,032 2010 2,281 2011 2,403 2012 2,541 2013 2,539 2014 2,447 2015 2,522 2016 2,709 T… Cargo Traffic – 2016 (Thousands of Tons) 19,753 24,086 5,934 4,331 26,974 27,973 2,825 2,107 Source: IPC 2005 Reform Program Objectives . Encourage free market efficiencies . Broaden private sector participation . Foster competition . Improve Israeli competitiveness in the global marketplace Port Sector - 2017 Eilat Port Israel Shipyard Shipping & Port Haifa Port SIPG-Bayport Dagon TIL- Southport Administration Ashdod Port ICI Gadot , Tashan Israel Ports Governmental Other Future Company Companies Terminal Operators On way to privatization Operators Israel Ports Company . Port infrastructure (physical and IT) management and development (waterside/ hinterland) . 140 employees . Operating revenue: NIS 916 million (~$240M) . Development budget: NIS 10.9 B (~$2.9 B) not including projects funded by other sources . Funding requirements: NIS 5-7 B /public placement 20-25 year term IPC Operational Activity . Physical Infrastructure Development . Technology Development . Logistics . Real Estate Management & Maintenance . Encourage Competitive Operational Environment . Misc. Areas Logistics Initiatives . TASC-Yam . “Good Night” . Gate and Driver Licensing Systems . Transport Data Base . Railway initiative Port Community System Rail Terminals Exporter/ Rail Importer roads Paperless, Freight forwarder Truck company Single Window, 24/7, Secure, Mainsys Uniformity, Shipping agency Depot Web Based Platform Custom Container agency Terminal Port authority Carrier Other Authorities Southport / Bayport Terminal Projects Container Traffic Forecast Forecast Traffic Container Thou. TEU Projected Existing (Thousands TEU) (Thousands 5,000 4,000 4,808 4,632 4,461 4,296 4,137 3,982 3,832 3,687 3,000 3,546 3,409 3,277 3,146 3,027 2,916 2,541 2,539 2,729 2,403 2,709 2,548 2,446 2,281 2,447 2,522 2,081 1,965 2,000 2,032 1,769 1,715 1,550 1,586 1,463 1,375 1,000 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014 2013 2014 2015 2015 2016 2016 2017 2018 2019 2020 Series1 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Planning Assumptions - Design vessel Container vessel – Maersk “EEE Class” . Length: 400m . Width: 59m . Draught: 14.5 – 16 m . Capacity: 18,000 TEU Haifa Bayport Terminal Bayport Project . Operator: Shanghai International Port Group Ltd. Period: 24 years, 11 months . Operator’s responsibility: Complete construction, equipment, systems, employees, operations, maintenance . Operational Target: January 2021 Ashdod Southport Terminal Southport Project . Operator: Terminal Investment Ltd. Period: 24 years, 11 months . Operator’s responsibility: Complete construction, equipment, systems, employees, operations, maintenance. Operational Target: October 2021 .