Suez: The Suez Canal Authority (SCA) Chairman Osama Rabie has announced the completion of the EGP 9 billion development project in the southern sector of the Suez Canal.
According to State Information Service Egypt, Rabie detailed in recent TV remarks that the two-and-a-half-year initiative aimed to enhance the canal’s navigational efficiency. The development involved duplicating the canal by 10 kilometers, widening the route by 40 meters towards the eastern bank, and deepening it to a depth between 66 and 72 feet.
Rabie anticipates that these enhancements will increase maritime traffic efficiency by approximately 28 percent, boosting the canal’s capacity. He emphasized that despite global shipping crises and declining revenues, the project persisted as directed by President Abdel-Fattah El-Sisi. The project was completed utilizing Egyptian laborers and locally manufactured dredgers, with all funds in Egyptian pounds to bolster the local economy and avoid reliance on foreign currency and equipment rentals.
Rabie also confirmed that there would be no increase in Suez Canal transit fees this year. He clarified that the development would improve the canal’s global competitiveness, reinforcing its role as a crucial route for international maritime trade. The project is seen as a significant step forward to attract new classes of ships and marine units and enhance navigational safety for unconventional transit operations.
Furthermore, Rabie expects large vessels to gradually resume their routes through the Red Sea by March 2025, with a full resumption anticipated by mid-year, contingent on the stability of the Gaza truce and the absence of threats or attacks on shipping. He noted that although indicators point towards calm in the Red Sea region, some shipping companies remain cautious, opting for the Cape of Good Hope route due to concerns about the security situation.
Positive developments have been observed, including the Houthis’ announcement of halting offensive operations following the Gaza ceasefire agreement. Rabie cited recent successful passages of ships, including the Liberian-flagged oil tanker Chrysalis, as encouraging signs of stability.
Despite these advancements, the ongoing conflict in the Red Sea has significantly impacted the Suez Canal’s revenues, resulting in a 61-62 percent loss, approximately $7 billion, in the fiscal year ending June 2025. Rabie highlighted the diversion of ships to the Cape of Good Hope route as a response to security threats, with 10,517 ships opting for this alternative since November 2023. He affirmed that these vessels would have used the Suez Canal if not for the security concerns.