How Israel’s Ashdod Port became an unlikely tech innovation hub

From innovator to innovation hub

Spinframe’s vehicle scanning system is already gaining ground. Global rental car and vehicle manufacturing companies pay US$1 per screening to monitor the status of inventory moving around the globe, which has improved efficiency by producing a better record of the condition of cars that get unloaded.

But Spinframe is far from the last company that the port is investing in. To date, more than 100 companies have participated in proof-of-concept projects through the Port of Ashdod’s corporate investment program. These include startups that leverage AI, computer vision, and Internet of Things technologies in areas like advanced maintenance, operational excellence, smart infrastructure, and cybersecurity.

Avrahami says a port may not seem like most people’s idea of an innovation hub, but it’s actually well positioned for the role. Its complex operations make it hard to bring in off-the-shelf solutions developed for different environments. This means the most effective tools are ones that are developed and grown onsite.

“Tech companies need to know how the port works,” Avrahami says. “They need to meet our engineers, and they need to meet our workers. Because if you want to protect the critical infrastructure, you need to put boots in the field.”

A bottom-up innovation approach

Unlike many corporate innovation initiatives, Ashdod Port’s approach emphasizes worker involvement and practical application over top-down technology adoption. The port’s eight unions became key partners in the innovation process. Avrahami and his team collaborate with front-line workers to identify pain points in the port’s operations and evaluate areas that are ripe for innovation.

“The unions are our secret sauce because I ask them what’s going to work and what’s not going to work,” Avrahami says. “The people are the soul of this. They bring their know-how and insights.”

This philosophy of letting the people on the front lines lead innovation extends to the port’s investment strategy as well. The Port of Ashdod works primarily with startups led by people with experience in port operations that are developing solutions to specific and clearly defined problems, rather than tech companies, whose tools aren’t developed specifically for port operations. “We do not invest based on a nice presentation and shaking hands in the air. We actually know these people; we know the team,” Avrahami says.

To help the companies it invests in grow beyond the port itself, the Port of Ashdod has established “innovation embassies” in dozens of ports worldwide, creating a network for technology export and import. The port has signed agreements with facilities in Thessaloniki in Greece; Barcelona in Spain; Hamburg in Germany; New York, New Jersey, New Orleans, and Tampa in the United States; and Santos in Brazil.

“We want to meet these people in ports around the world; we want to be friends with them,” says Avrahami. “These are the people that we actually speak with and try to affect change in the whole supply chain.”

A future vision for innovation and infrastructure

Looking ahead, Avrahami believes corporate venture capital will become increasingly important in infrastructure industries: “In my point of view, it will be more common in the future because we can bring our know-how and real-world experience,” he says.

The strategy focuses on building lasting infrastructure for innovation rather than chasing trends. “I’m not looking for a cloud in the sky. I’m looking at the whole sky,” he says. “I know that my world, my small world, is to build the infrastructure, to have these facilities for any kind of technology.”

Through this approach, Ashdod Port has demonstrated how traditional physical infrastructure companies can successfully pivot to become innovation leaders by leveraging their operational expertise and embracing collaborative partnerships with both workers and global industry players.