Israeli Eilat CEO reveals significant layoffs amid prolonged closure
Date
7/23/2024 7:59:18 AM
(MENAFN) vGideon Golber, the CEO of the Israeli port of Eilat, recently revealed that he has been compelled to lay off half of the port's workforce due to an eight-month closure resulting from operations carried out by the "Houthi" group in the Red Sea. In an interview with the Hebrew newspaper Maariv, Golber detailed the dire situation that has befallen Eilat, the southern gateway to Israel, which also serves as a critical access point to the Far East, Australia, and Africa. Golber explained that the crisis began at the end of last November when the Houthis hijacked a ship belonging to the NYK company, kidnapped its crew, and subsequently closed the shipping lane. This blockade has led to a complete halt in the port's activities, as ships are now unable to navigate in any direction to reach Eilat or to pass through the Suez Canal en route to Europe. Consequently, the port's operations and income streams have come to a standstill.
The economic repercussions of this situation have been severe. Golber warned that during the current week, 50 percent of the port's workers will be dismissed due to the inability to sustain salary payments. He highlighted that the port of Eilat employs 110 direct operational staff, with an additional 40 to 100 security personnel depending on the nature of the activities. Furthermore, around 250 to 300 individuals work indirectly with the port, all of whom have been impacted by the cessation of operations. Golber emphasized that despite the halt in income, the port continues to incur significant expenses, including payroll, taxes, and property-related costs, without any revenue to offset these liabilities.
In a separate statement to Yedioth Ahronoth, Golber disclosed that the monthly salary expenditure for the workers amounts to 3.5 million shekels (approximately 952 thousand dollars). This financial burden, coupled with the ongoing operational freeze, underscores the magnitude of the economic crisis facing the port of Eilat. The prolonged closure and resultant layoffs illustrate the broader impact of geopolitical conflicts on local economies and the livelihoods of those dependent on such critical infrastructure.
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