Egypt is actively exploring additional expansions of the Suez Canal to finalize a second channel, aiming to enhance shipping capacity and minimize disruptions that may impede traffic, Reuters highlights.
The remarks coincide with a significant decline in the canal’s earnings, attributed to shipping firms opting for alternative routes away from the watercourse. This shift is prompted by assaults by Houthi militants in Yemen targeting vessels in the Red Sea, despite the canal being the shortest route between Europe and Asia.
As explained, the potential new extension would build upon the ongoing efforts to elongate the second channel by 10 kilometers and enhance a section of the canal’s width and depth. These initiatives gained urgency following the grounding of the massive container ship, the Ever Given, in a narrow section of the canal in March 2021, causing a six-day disruption to traffic.
Critical for Egypt’s limited foreign currency reserves, the Suez Canal, which underwent an $8.2 billion expansion in 2015, featuring a 35-km parallel waterway, serves as a vital revenue source. Despite an anticipated increase, canal revenues reached a record $9.4 billion in the fiscal year ending in June 2023, but subsequently dropped by at least 40% at the beginning of the current year due to Houthi attacks in the Red Sea.
According to Suez Canal Authority (SCA) Chairman Osama Rabie, a potential extension would involve comprehensive studies over approximately 16 months, encompassing feasibility, environmental impact, engineering aspects, as well as soil and dredging research.
