Ismailia: Osama Rabie, Chairman of the Suez Canal Authority (SCA), welcomed a delegation from the International Monetary Fund (IMF) mission to Egypt, headed by Ivanna Vladkova Hollar. The visit aimed to provide the delegation with a close understanding of the SCA's activities, various projects, and future forecasts for canal traffic amidst the return of stability to the Red Sea region.
According to State Information Service Egypt, the meeting took place at the SCA's Maritime Training and Simulation Academy in Ismailia governorate. Attendees included Vice Admiral Ashraf Atwa, Vice Chairman of the SCA, Yasser Sobhi, Deputy Minister of Finance for Financial Policies, alongside several members of the SCA board and representatives from the Ministry of Finance. The visit occurred on the sidelines of the IMF mission's official visit to Egypt, underscoring the fruitful cooperation between the SCA and the Ministry of Finance.
In his opening remarks, Rabie welcomed the IMF delegation and expressed appreciation for the Fund's pivotal role in supporting development efforts and enhancing the efficiency of fiscal and monetary policies.
Rabie affirmed the Suez Canal's significant importance to the Egyptian economy as a primary source of foreign currency, noting that the Canal recorded total revenues of $40 billion in the period from 2019 to 2024.
Rabie emphasized the Canal's success in navigating numerous challenges over the past years, including the COVID-19 pandemic, the grounding of the Ever Given container ship, the Russia-Ukraine war, and most recently, the Red Sea crisis. He attributed this resilience to the Authority's flexible adaptation to global economic variables, continuous communication with clients, and the implementation of flexible marketing and pricing policies to meet their demands.
Rabie highlighted that the SCA successfully mitigated the impact of the Red Sea crisis by adopting an ambitious strategy based on diversifying sources of income. This included introducing new maritime and logistical services, such as debris removal services through a partnership with Antipollution Egypt, ship repair and maintenance services, crew change services, and pollution control services.
He also stressed efforts to localize marine industries and open new markets for external exports.
The Chairman pointed out that the Sharm El-Sheikh Peace Summit was a pivotal event in restoring stability to the Red Sea region after nearly two years of negative impact due to security concerns, noting that transit rates have shown improvement since the return of stability.
Rabie presented recent navigation statistics, revealing that from the beginning of last July until today, 5,874 vessels transited the Canal, carrying 247.2 million tons of net tonnage and achieving revenues of $1.970 billion. This represents a significant increase compared to the same period last year, which saw 5,584 vessels, 216.0 million tons, and revenues of $1.677 billion.
The current period saw increases of 5.2% in vessel numbers, 14.4% in net tonnage, and 17.5% in revenues.
Regarding future financial projections, Admiral Rabie stated that estimates indicate an improvement in the Canal's revenues during the FY 2025/2026. Revenues are projected to rise to approximately $8 billion during FY 2026/2027, reaching around $10 billion during FY 2027/2028.
The presentation also touched upon the SCA's diverse economic and development projects, including fish farming, industrial development (building floating pontoon and tugboat factories in Safaga), and the construction of a petrochemical complex in Ain Sokhna, in addition to social services for Canal cities.
In closing, Rabie stressed the importance of international economic institutions in conveying a positive image of the current situation in the Red Sea region and encouraging the return of traffic.
Hollar affirmed the Suez Canal's strategic importance to global trade. She praised the sophisticated navigation and logistical services provided by the Canal, which, coupled with significant savings in time and distance, make it a key element in supporting global supply chains and international trade.
The IMF mission chief commended the SCA's ability to manage various crises and respond flexibly to challenges by improving service efficiency and maintaining constant communication with clients. She confirmed that these efforts contribute to the sustainability of navigation and the restoration of stability in the Red Sea.
The delegation's visit included observing a maritime training maneuver at the Simulation Academy, a tour of the Suez Canal Museum, a boat trip through the New Suez Canal, and a visit to the Suez Canal Yacht Marina in Ismailia.