Israeland China Harbour have reached terms for the Beijing company to begin construction on a private port in Ashdod.
After three months of negotiations, the two sides have agreed on a US$900 million investment for the Port of Ashdod.
ChinaHarbour is aiming to develop Haifa Port as well as Ashdod in order to inject competition into a sector dominated by two state-owned ports.
However, the contractors are still being confirmed for Haifa Port.
The contract marks a deepening of ties between Israel and China.
ChinaHarbour is due to begin construction work in Ashdod by late 2014.
It will construct a 1,050 metre long pier north of the existing government-owned port, as well as a 2,800 metre breakwater structure for the coast.
The facility is expected to take 7-8 years to complete because a temporary pier will need to be built in order to allow construction-related vessels to dock.
The Haifa Port construction, which has an anticipated cost of US$1.9 billion, includes a 1,100-metre-long pier and a 3,100-metre breakwater that will take 5-6 years to build.
A signing ceremony is scheduled for tomorrow in Israeli Prime Minister’s Benjamin Netanyahu’s office.
A tender is also being readied by the Israeli Government to award two operating companies 25 years each for the construction of the ports.