Hezbollah ties bar Turkish co from Haifa Port tender

The Israel Government Companies Authority decided this week to disqualify the participation of a Turkish company and its consortium in the tender for the privatization of Haifa Port. Sources close to the matter have informed "Globes" that the reason for the disqualification is that one of the owners of the Turkish company is also a member of the shipping company operating Beirut Port in Lebanon.

When representatives of Turkish company Yilport Holdings entered the hall for the hearing for the Haifa port privatization tender last November, they were not told why they were going to be disqualified from the tender. "State security is a mysterious secret and they didn't bother to tell us why we were disqualified," said Adv. Amnon Epstein, who represents the Group. "It's absurd that the state chased after them to bid for the tender and then stopped them."

Yilport plans petitioning the court for administrative affairs to null the disqualification.

Intelligence information reveals the connection to the suspect port

In January 2020, Israel decided to privatize all government holdings in Haifa Port to any buyer or consortium that met the various criteria of relevant experience, and financial strength. The decision to privatize also included the need to protect Israel's security interests.

The decision to disqualify the Turkish company does not stem from professional considerations. The company has ownership of more than 20 ports around the world. But intelligence sources involved in the tender process have told "Globes" that one of the controlling owners of Yilport, Turkish businessman Robert Yuksel Yildirim is also a management member of the CMA CGM Group, one of the world's largest shipping companies.

Among other things CMA CGM operates Beirut port in Lebanon, where Hezbollah does as it wants. It was in Beirut Port in August 2020 that there was a huge explosion of Hezbollah's ammonium nitrate, in which more than 200 people were killed. Israeli intelligence reports and classified information indicate a connection between CMA GCM and senior Hezbollah figures and Shi'ite terrorist activists worldwide. For example, the man responsible for Beirut Port, Lebanon's Minister of Public Works and Transport Ali Hamieh, is a member of Hezbollah. The company also operates Latakia port in Syria, through which Iran conveys weapons to Hezbollah.

An extensive intelligence report on these matters was shown to the ministerial committee on privatization and the tenders committee. Yilport originally held a 51% stake in the consortium that included US company Greenstone, UK-Turkish company Global Ports, and Israeli company Oceanow. But when it became clear that the Israeli security organizations opposed it, the stake was reduced to 25%, with Greenstone taking the controlling stake, but to no avail, the consortium was still disqualified.

An Israeli security source familiar with the matter told "Globes" that Israel could not allow itself to let Haifa Port, a vital part of the country's infrastructure, be under the control of a company with indirect contacts with Hezbollah. "The intelligence information is clear," the source claims. "The risk, even if only looked at theoretically, would not allow any other decision."

The decision to disqualify Yilport has not come as a surprise in Turkey and it is not expected to harm improving relations between Israel and Turkey.

Dr. Hay Eytan Cohen Yanarocak, an expert on Turkish politics at the Moshe Dayan Center for Middle Eastern and African Studies at Tel Aviv University told "Globes," "Trust has not yet reached the level at which Israel could let a Turkish company be the owner of the port."

But he is optimistic about the future. "It does not have to be an obstacle and after realizing normalization, it could be possible for Turkish companies to participate in tenders."

Gokhan Cinkara, a columnist with Turkish newspaper Independent told "Globes," "The disqualification of Yilport's bid won't influence the normalization process between the countries." Cinkara said that Turkey's secularists are satisfied with the normalization process, the conservatives are wary about Erdogan's policy and the Islamists are very unhappy.