The number of ships in transit and the volume of goods transported through the Suez Canal both recorded record levels of 25,887 ships and 1.5 billion tons, respectively.
Chairman of the Suez Canal Authority (SCA) of Egypt, Mr. Osama Rabie, said on June 21 that the revenue of this maritime route in the 2022-2023 fiscal year has increased by 35% compared to the previous fiscal year, reaching record 9.4 billion USD.
The number of ships in transit and the volume of goods transported through the Suez Canal both recorded record levels of 25,887 ships and 1.5 billion tons, respectively.
Speaking at a press conference on June 21, Mr. Rabie emphasized that SCA's implementation of a series of development projects is a key factor leading to the successful performance of the Suez Canal in the 2022-2023 fiscal year, Notably, the project to upgrade and expand the more than 190km long sea route connecting the Red Sea with the Mediterranean.
The project consists of 2 phases. In phase 1, Egypt extended the two-way traffic section by 10km from 75km to 85km. In phase 2, the 30km long section south of the Suez Canal, in Suez province, was expanded by 40m towards the east bank of the canal and deepened by 1.83m.
The goal of the project is to improve the operational efficiency and maritime safety of the Suez Canal.
Mr. Rabie said SCA is preparing to offer 20% shares in Canal Rope company on the Egyptian Stock Exchange as part of the government's initial public offering (IPO) program.
The Suez Canal Joint Stock Company was established to carry out this IPO plan. Mr. Rabie expressed hope that the offering of shares in Canal Rope, a highly profitable company, will generate additional revenue for the Suez Canal. SCA currently owns 7 companies, most of which are profitable.
“SCA is reviewing transit fees through the Suez Canal,” Mr. Rabie noted. It is expected that in October 2023, we will announce a decision to increase or maintain the current fees. Any fee changes will take effect in January 2024.
In January 2023, the SCA increased transit fees by 15% for all large cargo ships and by 10% for dry cargo ships and cruise ships.”
As an important maritime route connecting the Mediterranean and the Red Sea, the Suez Canal accounts for about 12% of the world's seaborne cargo volume and is one of Egypt's key sources of foreign exchange revenue./.
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