Cairo: Suez Canal Authority (SCA) Chairman Osama Rabie announced that four Egyptian-made tugboats, manufactured by the South Red Sea Shipyard, have been sold to Italy's Neri company. This sale marks Egypt's entry into the European market for locally manufactured marine units.
According to State Information Service Egypt, the SCA has also signed contracts to export two additional tugboats and a custom-built yacht, all produced at the South Red Sea Shipyard. Rabie highlighted that this development aligns with President Abdel-Fattah El-Sisi's directives to localize maritime industries and collaborate with the private sector to manufacture marine vessels domestically.
Rabie further explained that the South Red Sea Shipyard has evolved over two and a half years from a small repair facility into a significant shipyard producing tugboats, fishing vessels, and yachts. So far, 16 tugboats have been built at the shipyard, with 10 delivered to the SCA and four sold to Neri in Italy.
In addition to tugboat production, President El-Sisi has directed the construction of 100 deep-sea fishing vessels ranging from 25 to 50 meters in length. The first vessels are being built at the South Red Sea Shipyard, with others to follow at SCA shipyards. The initial batch of vessels is expected to be delivered by the end of June, with more to follow by the year's end.
Rabie noted that these vessels are equipped with advanced fishing systems, including sonar technology, and are intended to foster cooperation with several African and regional countries interested in Egypt's fisheries sector. Countries such as Comoros, Mauritania, Senegal, Somalia, Eritrea, and Yemen have expressed interest in collaboration.
Highlighting Egypt's ongoing high-seas fishing operations, Rabie mentioned the Danish-built vessel 'Rizk 1,' which is currently operating in Australia. The new Egyptian-built vessels, 'Rizk 2' and 'Rizk 3,' are based on the Danish model but feature upgraded equipment. Production of these vessels will continue at a pace of two every six months.
Regarding Suez Canal revenues, Rabie anticipates a return to 2023 revenue levels by the second half of 2027, assuming regional stability. The authority aims for revenues to reach approximately $8 billion by this period. Although security concerns persist, Rabie noted that the SCA is exploring potential incentives for shipping lines with high transit volumes.
Insurance costs have increased by about 70 percent due to heightened attacks near Bab Al-Mandab, affecting shipping companies. Rabie clarified that ships reaching the Suez Canal via the Strait of Hormuz constitute no more than 7 percent of total canal traffic, with tensions there having minimal impact on operations.
Looking ahead, the SCA's strategy focuses on developing the canal's navigational channel, upgrading its marine fleet, and promoting Egyptian-made maritime products globally. The authority seeks to diversify revenue streams beyond transit fees, including shipbuilding, repairs, marine services, river transport units, and export-oriented maritime manufacturing.