TECHNICAL ASSISTANCE
VII - Managerial and institutional capacities for Gaza Seaport

Context and rationale

While trade expansion is a prerequisite for improving the Palestinian economy's supply capacity, industries operate without proper port facilities. Although participation in international trade is facilitated through Israeli port facilities, high transaction costs and complex procedures continue to erode benefits derived from foreign trade and discourage investments in productive sectors.

The Palestinian Development Plan (PDP) gives priority to the development of basic transport facilities, with plans to establish one airport in the West Bank and one in the Gaza Strip. Preparations are underway for establishing a deepwater seaport south of the border of Gaza city that will handle exports of agricultural, mining and industrial products and imports of food, raw materials, industrial products and fuel. In view of plans to develop industrial zones at three locations on the border between Gaza and Israel and up to six industrial zones in the West Bank, the need to expedite the construction of this port is pertinent. The port will also capitalize on the territory's location as a regional transit corridor, with future plans to serve Jordan and establish links with neighbouring ports in Egypt, Lebanon, Jordan and Cyprus.

In 1995, the PA requested UNCTAD's assistance in establishing the necessary institutional set-up for operating the seaport. A preparatory mission was dispatched to assess current and future needs. As the actual construction of the port began only in 2000 (and has since been suspended), UNCTAD's possible contribution in this area has been under review.

Objectives

To assist the PA in establishing the institutional, technical, managerial and operational capacities relating to port and shipping activities, including the establishment of the Gaza Seaport Authority.

Main activities

Advisory and training services will be provided in close coordination with the Gaza Port Committee of the PA Ministry of Transportation during the development and the initiation phases of Gaza Seaport, with a view to:

• Designing the organizational structure and operations manual of the General Directorate of Port and Shipping, and the Gaza Seaport Authority;

• Developing a comprehensive maritime Code, including a Port Act;

• Developing human resources capacity;

• Advising the PA on technical matters related to the development of Gaza Seaport; and on matters related to international transport.

Status

UNCTAD updated its proposed technical assistance activities in this area, following a field mission that was dispatched in response to a PA request in 2000, especially with regard to the preparation of a Port Act. The mission resulted in a follow-up project proposal to establish a Port Cell that would serve as the nucleus of the Seaport Authority. It would supervise planning, construction and commissioning of the port, and ensure adequate interlinkages between the legal, engineering, commercial, environmental security and other technical aspects of the project, including human resources development. Although construction works were interrupted since October 2000, as soon as institutional and legal preparations are resumed, renewed efforts will be made to secure the needed funds.

Gaza Sea Port Project (2000)