00:00It's a feeling of relief as one of Egypt's strategic investments and all-important waterway
00:10shows signs of recovery from the Gaza war.
00:13For two years, shipping firms had taken the safer but much longer route around the Cape
00:19of Good Hope in South Africa, which led to over 70 percent in losses for the canal and
00:25a big dent to the Egyptian economy.
00:27The Suez Canal is the second highest source of hard currency for Egypt.
00:34It accounts to over 12 percent of international trade while 30 percent of containers worldwide
00:40pass through it as revenue reached 10 billion US dollars per year.
00:44The Houthi attacks on vessels in the Red Sea were the cause of destabilization and deprived
00:49the economy from this valuable revenue.
00:55Since the outbreak of Israel's war on Gaza in October 2023, major global shipping lines
01:01have diverted vessels away from the canal following the attacks on commercial ships in the Red
01:06Sea and the Bebel Mandap Strait by Yemen's Houthi group, which said the attacks were in solidarity
01:12with Gaza.
01:14During the slow period, the authority expanded the waterway with the completion of development
01:18work in this southern sector.
01:22We have worked hard for two and a half years to expand the southern part of the canal.
01:27We built a two-way 10-kilometer waterway along the south of the canal.
01:30Now the Suez Canal is 82 kilometers long.
01:33This will increase the number of ships passing at the same time by six to eight ships.
01:38It will reduce accident rates and shorten the period of crossing the canal.
01:42In the east side, we widened the canal by 40 meters and dug deeper from 62 to 72 feet
01:48below, which will increase the traffic by 28 percent.
01:53The canal authority has also diversified its sources of income by launching a major shipyard
01:57factory for production, maintenance and export of river buses, fishing boats, luxury yachts
02:04and tugboats.
02:06A Gaza ceasefire agreement recently signed in Egypt's city of Sharm el-Sheikh has restored
02:12stability along the Red Sea and could mark a starting point for the Suez Canal.
02:19Officials moved swiftly to offer a set of incentives that succeeded in attracting
02:23two of the largest shipping companies worldwide, Meersk and CMA-CGM, while more are expected
02:30to join in.
02:31The discounts increase the heavier the containers are and the more times the vessel crosses
02:37the canal, with a minimum 15 percent discount, as well as free catering and maintenance services
02:43in some cases.
02:45Supertankers have special privileges, too.
02:49As traffic slowly recovers, the government targets a rebound in revenue to reach 15 billion
02:55dollars in mid-2027, up from pre-Gaza war levels of 10 billion dollars.
03:01That's, of course, if peace efforts are sustained in the region.
Comments