Sea attacks by the Iran-backed Houthi group in Yemen closed the Israeli Red Sea port of Eilat but enriched the Israeli state by diverting trade to a government-owned Mediterranean entrepot, the port's CEO told Iran International.
“The Houthis are making a mistake closing Bab al Mandab," The port's Iranian-born CEO Gidon Golber said.
"Yes it hurts Eilat, the smallest port in Israel, but what they’ve done is drive all the cargo to Ashdod and Haifa. So who wins? The Israeli government."
“We are a private sector port and 75% of the shareholders are American. Ashdod is a government port and Haifa is Indian. If the Houthis understood they’re helping the government, and harming mostly Americans, they would open the route.”
Gateway to the East
Israel’s gateway to the far east, Africa, India and Australia via the Red Sea, Eilat has seen all its cargo evaporate after the blockade which began in November 2023, shortly after the outbreak of war in Gaza.
The Houthis say they imposed the blockade to force Israel into a ceasefire with Iran-backed Hamas fighters in Gaza, but has since killed eight international mariners and attacked dozens of ships with no apparent connection to Israel or Western foes.
Eilat port in Israel’s southern coastal town is now only used by the military but was once the port for over half the cars coming to Israel along with cattle from Australia and various minerals.
“Ashdod and Haifa are now making more money, which is why Israel isn’t running to open the route,” said Golber. “It’s only harming the local Eilat economy.”
Of the port’s regular 120 workers, 90 are still employed there. “We didn’t fire workers - some went to Ashdod and others get a salary from the government,” Golber said.
Due to the high profit margin on cars in Israel, the 160,000 cars a year that came to Eilat, now go to government-run Ashdod Port and privately-run Haifa, which is mostly Indian owned.
“Even when the cargoes are in anchor, the ports earn money. So the Houthis did good for Israel,” Golber added. “The blockade is not slowing down logistics and is not driving prices up.”
Even though cargo now goes from the Far East via South Africa with a route of an extra 20 days, the end prices have remained the same as when using the Bab al Mandab route, Golber said.
Hopes for peace prevail
Golber is one of tens of thousands of Iranians living in Israel. He came when he was aged 1, having been born in Ahvaz.
“Iranians are very smart, cultured people, with a lot of tradition. We really hope there will be a peace treaty with Iran like it was before and trade will return like it was. If we have Abraham accords peace, it will be fruitful for the whole region,” he said.
In addition to the blockade, the Houthis have fired scores of missiles and drones to Israel since the outbreak of the Gaza war, most intercepted by air defense systems, though there have been some lapses.
Most recently, Eilat's Ramon Airport was shut briefly this month when a drone launched from Yemen struck the arrivals hall, Israel's Airports Authority said.
One man was killed in a drone attack on Tel Aviv which hit a residential building last year and a missile attack narrowly missed Israel's busiest airport in May.
Israel has responded with multiple airstrikes in Yemen, where the Houthis control large amounts of the territory after a civil war erupted in 2014. Local health authorities say the attacks have killed scores of civilians in recent months.
An Israeli attack earlier this month killed a gathering of senior leaders including the prime minister of the Houthi-led government.
