Looking to Suez expansion for economic growth in Egypt

Hopes are rising that a $4bn project to widen the Suez Canal will provide Egypt with a boost in construction activity, while also significantly raising revenue in the longer term.

The Suez Canal brings in around $5bn in revenue annually and has evolved into one of the world’s most strategically important international trade conduits since it opened almost 150 years ago. Today, the waterway is still the quickest sea route between Europe and Asia.

Egypt’s challenging economic environment has led officials to refocus their efforts on expanding and upgrading the canal. Estimates suggest that revenue from the waterway could increase to $13.5bn once the work is completed, although some aspects of the project, including its location, have come under criticism.

Expansion to improve efficiency
Egypt’s army will coordinate the work on the initiative, known as the Suez Canal Corridor Development Project, which was launched on August 5 by President Abdel Fattah Al Sisi. The initiative will involve 35km of dry digging and 37km of “expansion and deepening”, according to Mohab Mamish, the head of the Suez Canal Authority. This will see the canal’s waterway widened, creating a much longer stretch of “dual carriageway” where ships can pass more easily.

The expansion should lead to increased efficiency as well as a reduction in the maximum waiting time from 11 to three hours. The number of passing ships that can be handled daily will almost double to 97.