Last update - 01:43 17/12/2006
Gaza goods cost up to a million shekels more a day
By Guy Leshem
In order to sell goods in the Gaza Strip, merchants have to pay over half a million shekels in "protection money" to drivers and shippers, TheMarker has learned. The payments are for transfer of goods from Israel to Gaza through the Karni crossing point.
For the past year the sellers have warned that because of the inefficient operations and limited hours at the crossing, incredible congestion occurs at Karni. It can sometimes take three days to receive approval to transfer goods to the other side. According to various merchants who sell to Gaza, the Airports Authority - which is responsible for the crossing - issues a very small number of slots per day, so as not to overload the crossing.
"The drivers grab fictitious slots, sometimes even two weeks in advance, even if they do not have actual orders, and then later sell the slot to the highest bidder," said one fruit and vegetable marketer.
Sources in the transport industry who are experts in transportation costs say that this raises prices of goods by tens to hundreds of percent, depending on the type of commodities involved.
For example, a truckload of bananas, an item very much in demand in Gaza, will see its price jump from NIS 5,000 a truck to NIS 10,000. Textiles can cost NIS 25,000 a load.
About 200 trucks a day pass through the Karni crossing, with all types of goods. Most carry fresh and dry foodstuffs, textiles and humanitarian aid. Others go through special lanes designed for quick loading and unloading of goods such as cement or animal feed.
The increased price of transport affects seasonable goods in particular, for which there is time pressure to deliver quickly - and the sellers give in and pay. According to estimates from various industries, the average extra payment per truckload is NIS 5,000. In total, that works to between half a million and a million shekels in extortion a day. The Karni crossing has been open an average of 150 days a year, and about NIS 8 billion in goods moved through it.
It seems that there is no one interested in fighting the present system. The crossing is managed by a division of the Israel Airports Authority (IAA), which charges the traders fees to cover operating costs. The IAA has told those with grievances to file a complaint with the police.
For now there is also no agreement between the IAA and the Defense Ministry over the number of hours that the crossing is open. According to the ministry, the IAA is interested in saving money, and does not want to add hours.
The IAA responded: "The IAA has no involvement whatsoever in the matter of selling slots. The IAA obviously abhors the matter, but it is outside of our authority. As to a second shift, the Ministry of Defense approved extending the operating hours of the crossing, but the matter has not been budgeted. In fact the opposite has happened: The treasury has demanded that the IAA cut the crossing's budget by 20 percent next year. It must also be said that part of the problem of the lines is a result of the closing of the crossing about 100 working days a year for security reasons."