Page 107 - ZIM 80

Agents and Friends
In 1951, Zim’s attempt to join the association of shipping companies exporting from
Cyprus was dismissed with disdain. A towering Scottish representative of the so-called
“Conference,” looked down upon Zim’s local representative, “Papa” Papavassiliou, and
stated his opinion: that Zim wouldn’t be around for much longer.
Papa had been an activist in the underground during the period of the illegal immigration.
He knew the heads of the Yishuv personally, and his bold friendships with the people
at Zim, born in solidarity and struggle, would last a lifetime. Moreover, Papa was the
quintessential shipping agent: well-versed in the ins and outs of maritime trade, from
issuing bills of lading to handling drunken sailors; with vast stores of knowledge, a shrewd
business sense, and impressive interpersonal skills. Furious following this rejection, Papa
approached the Cypriot carob growers (Cyprus’s main export at the time), offered them
discounted shipping rates, and signed cargo contracts with them. Representatives of
the European shipping companies were shocked to discover Zim’s Etrog carrying their
profitable carob cargo; a short while later the Conference members offered Zim to join
the association. Zim declined.
This early episode underscores the importance of Zim’s local agents for the company’s
business. Zim had similar close ties at almost every port of call, and to name them all is
beyond the scope of this text. Getting a foothold in new commercial regions necessitated
personal connections and relationships of mutual trust with key local actors. Zim excelled,
over the course of many years, and across the globe, in cultivating the personal aspect
of its commercial activity.
The story of Zim’s expansion throughout East Asia is peppered with anecdotes about
Zim agents striking roots in distant countries, cultures, and societies. Zim’s first CEO, Dr. network. And still, there were quite a few “black spots” on the map – destinations that
Wydra, firmly believed that the future lay in the burgeoning Asian economy, in particular
in Japan, and sent a reconnaissance “expedition” there, consisting of one man – Paul Biro.
Biro was a stranger in a strange land, but within just a few years he established the first
of Zim’s subsidiaries that did not deal in Israeli commerce; the mandate of the Gold Star
Line was to develop trade routes between Japan and Africa, and it did so with remarkable
success, in large part thanks to a network of warm personal connections. Dror Vered, who
managed the company, told how his skills as a hockey player helped him recruit Indian
clients who worked in trade in Africa; indeed, many commercial partnerships were born
on the sports field, at community gatherings, and even in synagogues and private homes.
Lines and Stars
Zim’s stars became a familiar sight in an increasing number of ports, and Zim became
a model of success, in particular for young nations that had gained their independence
during de-colonialization in the mid-20th century. Ghana’s first president, Nkrumah,
turned to Zim for assistance in establishing a national shipping company. This led to the
establishment of the Black Star Line, which operated successfully throughout the 1960s.
Israelis and Ghanaians worked side by side at its headquarters and on its ships. In Burma,
which had gained its independence in 1948, Zim helped the government establish the
Burma Five Star Line. Even in Indonesia, despite the political complexities there, Zim
assisted and managed the establishment of the Ocean Star Line.
)‫"פאפא" עם בנו כריס (מימין‬
“Papa” Papavassiliou with his son, Chris (right)
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And there were other attempts that didn’t come to fruition, for example, in the Philippines,
Thailand, and Cambodia. The stars shone everywhere, and a series of ships with “Star” in
their names was built. In those years, with the financing of loyal, mostly Jewish-American,
clients, Zim built the Pacific Star Line, which imported consumer goods from Japan
to the United States. The picture was completed by the first Seven Star Line, which
connected Africa and the US.
An important milestone came when Zim became a founding partner in the conference
of major shipping companies in the trade between Japan and Africa – a surprising
achievement that did not come easily: the people at Zim played a sophisticated game
of poker with their powerful commercial rivals, and made them, almost against their will,
recognize Zim’s status as an equal player.
On the other end of the world, Zim had been working from the very beginning on the
East Coast of the United States. There, its agents also snatched up new opportunities
when they arose. For instance, when the Saint Lawrence Seaway was widened to allow
the passage of larger ships, Zim hurried to establish the Great Lakes Line, and its ships
docked in cities such as Cleveland, Chicago, and Detroit, in the most advanced industrial
area in the world at the time. In subsequent years Zim would also reach the ports of the
West Coast and the Gulf of Mexico, and would also establish a line connecting between
North and South America.
Zim thus expanded the breadth of its operations, sometimes with cautious steps and
sometimes in leaps and bounds. The pattern that had been established from the very
beginning – an entrepreneurial spirit and the audacity to sail to new destinations, became
an inseparable part of Zim’s character no matter where they worked. East Africa, South
America, Australia, and the west coast of the US, all gradually became part of Zim’s
remain beyond the reach of the company, primarily for political reasons.
The Awakening Giant
In 1975, Zim moved its regional headquarters in East Asia from Tokyo to Hong Kong. The
Sun Hing Agency, a name meaning “resurrection,” represented Zim’s business matters in
Hong Kong and facilitated the first tentative forays into collaborations with mainland China.
In early 1995, Zim representative Danny Hoffman was sent to establish the first agency in
Shanghai. China’s rise as a global economic force was not a secret process, but still the
obstacles for foreign companies trying to get a foothold in the burgeoning Chinese market
were great. Zim was the first shipping company to receive permits to open a headquarters
in China, and it was also the first to establish a far-reaching network of agencies along
the Chinese coast, from Dalian to Guangzhou, as well as on the banks of the great rivers
that led to the interior of the country. Zim established subsidiaries to deal with logistics,
construction of containers, and more, and became a striking presence in the world’s
most important commercial superpower. The growth of Zim in trade with China ensured
the company’s standing on the most vibrant trade routes in the world for years to come.